We have a top up mortgage on our home which we could not afford to pay last year. I am about to start a new job in January that allows us to now pay the top up mortgage in full each month.
We are currently paying capital only on our main mortgage and nothing on our top up loan.
My question is should we continue:
a) to pay the capital only plus some on our main mortgage
b) continue to pay the capital only on main mortgage and the full amount on our top up loan each month
How much in arrears are you? Can you clear them over, say, 6 months?
If so, you should aim to do so.
If you can't clear them in 6 months, then talk to the lender. Tell them your new circumstance and ask them to capitalise the arrears as you can now afford to pay more.