mortgage interest only payments

Is there a branch of your bank open on the weekends - i would really recomend going in and speaking to them and hashing it out

Not a nice situation to be in but best of luck!

Are you on a high fixed rate? Could you break the term (yes, you'll have to pay a huge break fee, but they may let you add that to the loan), and refix at a lower rate?

Interest only is unlikely to save you much if you haven't been in the house for long. You have to have paid of a sizeable chunk of the principle before that will help because initially the payment is almost all interest anyway.

I hate to say it, but the truth is that if you are in a house you can't afford, eventually you'll be forced to sell it. It really is better to sell it sooner, while you still have some flexibility, than wait until it's forced. Can you downgrade to a cheaper house - whether it be further out or smaller or something?

Absolutely have a good go at coming up with a solution first, but if there isn't a real solution, think about selling. I know it's your home, but really it's just a house. The parts that make it your home (the people in it, your things, the memories etc), you'll take them with you to a new house.

I hope there is a good solution for ya

How long have you had your mortgage for? Interest only really only works if you've had your mortgage for quite some time, otherwise your repayments are basically all interest with a little principle and it doesn't make much difference.

Kiwilaurie isn't on here much anymore but I remember her saying on another thread that she was a teamleader in the mortgage dept for one of the high street banks.

What a terribly stressful situation for you I second the suggestion of going in to see the bank rather than ringing them.

The pricipal payment part of our long is only $330 a month, so I doubt it would save u much by only paying the interest anyway.
I enquired about a morgage holiday last week through our broker- he said a lot of banks are not even allowing mortgage holidays at the moment, and the ones that are will only give them for max 3 months, and you will still be expected to pay the interest but the holiday will be off the principal payments only.

Sounds like you have made up your mind....but, if you are still looking for options, I strongly recommend NZ Home loans. We have just switched our mortgage and they have reduced the time of our mortage by heaps. We have even put our $11000 credit card on it and it still works much better than what we had.
They have a really good plan so you have flexibility to have family holidays, upgrade your car etc etc

Good luck

Can i still recomend going in and talking with your bank face to face

We went in for a different reason but they gave us some many options we didnt even think were possible!

If you show a willingness to sort it they totally work with you!

Unemployment has risen again in Aussie so please dont place all your hopes on him being able to find an awesome job - it isnt as easy as it once was!

if you contact the bank they may have a mobile mortgage manager that will come to you in your convenience. thats what my husband and i did.

our flatties only pay $150 a week which includes all expenses except food so we wont really lose too much with them leaving.

we will lose money on our house cos we havent really paid anything off our principal and the market is worse now than when we bought

we wont go to aussie unless DH has a job first so we wont get caught out by that.

the house is very much an emotional thing too. we got it for a good price and its where we have had our kids and watched the oldest learn to walk etc... its too hard for us to say goodbye especially if we are going to lose money in the process.

the only real debt we have is that house and about 4k on the credit card and a small car loan so we arent exactly drowing in debt which is great.

we have budgeted that the rent from our house will no where near cover mortgage let alone rates and insurance but we can still live on that quite easy seeing as we are getting a shared house over there our rent will be cheaper (flatties are already sussing that out and have looked at how much we are paying etc)

our mortgage manager is an absolute idiot (example he did all the paperwork for our interest rate re-fix so we re-did the budget and bought a much needed new car then got an email from him saying oops sorry it doesnt re-fix till this date next year) but we are gonna bite the bullet and see him and if he is still hopeless we'll ask for a new one. i definitly think it is a good idea to get all our options sorted here even if we do still decide to do an OE anyway. the less expenses the better. also if things backfire over there we can take a mortgage holiday early next year which can quite easily give us the funds to come back and find better jobs etc

have spoken to the bank now and they have told us our only option is to break and re-fix but they wont loan us amount we need. they also wont give us a loan because of DH losing his overtime. lol. we are now on the pray route. lmao

its about 8k now and extends our mortgage back out to 30 years. we can re-fix in feb so not worth it. when we got our mortgage they were doing 5% deposit but now its 20% we cant borrow even close to what we need.