We're creaking under the weight of our credit card debts - but our 5 year fixed term on our mortgage has just come to an end so we are thinking about changing it... though even staying on the base rate mortgage would mean monthly payments are less.
We were wondering if it would be possible to transfer to interest only for a couple of years if we remortgage as this could potentially mean we could pay off our credit cards in 2 years rather than struggling for 6. After the two years, we would want to go back to a repayment mortgage.
I personally think that this would enable us to pay off our 'bad debt', and then give us more money - and possibly even enable us to move to a bigger house when the interest only term was up and debts paid.
I've read that interest only mortgages are a lot harder to get than they were 5 years ago. It seems simple in my head - can anyone see any potential pitfalls with this plan?
We were wondering if it would be possible to transfer to interest only for a couple of years if we remortgage as this could potentially mean we could pay off our credit cards in 2 years rather than struggling for 6. After the two years, we would want to go back to a repayment mortgage.
I personally think that this would enable us to pay off our 'bad debt', and then give us more money - and possibly even enable us to move to a bigger house when the interest only term was up and debts paid.
I've read that interest only mortgages are a lot harder to get than they were 5 years ago. It seems simple in my head - can anyone see any potential pitfalls with this plan?