Current situation:
Purchased property in October 2007 for €310k.
Mortgage was for €300k, with fixed interest rate of 5.05% for 3 years. Will end in October 2010, at which stage balance will be approx €290k. This is with Bank of Scotland.
With increased taxes & paycuts to my salary things were tight but was still okay with monthly payments. However 6 months ago i had a baby (not planned). My firm does not pay during maternity leave, so i have had to use my savings to pay mortgage since then. I will be returning to work now, and will have childcare costs also. I also have no idea of the interest rate that i will be facing at the end of the year, and this is what is really worrying me. BOS appear to have interest rates more than double anyone else in the market. I'm just wondering if i have any options, as if i have to take the interest rates they are offering at the moment (approx 6.5% & prob higher by oct) i will not be able to make the payments.
I assume i will not be able to move to another bank given the above figures? I assume i am in negative equity. House was on the market at 350k 6 months before i purchased for 310k, but prices have fallen since then again. Houses in the area were recently on the market for 310k, & one sold, but i obviously dont know how much it actually went for. How would i get a current value for the house & how much would this cost.
I know the situation is serious, i'm just wondering if anyone more knowledgable than me in the area (which wouldnt be hard) has any alternatives other than me losing my home?
Purchased property in October 2007 for €310k.
Mortgage was for €300k, with fixed interest rate of 5.05% for 3 years. Will end in October 2010, at which stage balance will be approx €290k. This is with Bank of Scotland.
With increased taxes & paycuts to my salary things were tight but was still okay with monthly payments. However 6 months ago i had a baby (not planned). My firm does not pay during maternity leave, so i have had to use my savings to pay mortgage since then. I will be returning to work now, and will have childcare costs also. I also have no idea of the interest rate that i will be facing at the end of the year, and this is what is really worrying me. BOS appear to have interest rates more than double anyone else in the market. I'm just wondering if i have any options, as if i have to take the interest rates they are offering at the moment (approx 6.5% & prob higher by oct) i will not be able to make the payments.
I assume i will not be able to move to another bank given the above figures? I assume i am in negative equity. House was on the market at 350k 6 months before i purchased for 310k, but prices have fallen since then again. Houses in the area were recently on the market for 310k, & one sold, but i obviously dont know how much it actually went for. How would i get a current value for the house & how much would this cost.
I know the situation is serious, i'm just wondering if anyone more knowledgable than me in the area (which wouldnt be hard) has any alternatives other than me losing my home?