l heard this the other day on the suze orman show that, if your mortgage, insurance and property tax, is more than 31% of your income you can ask your bank for a reduction in your interest rate.Is this true, and if so what is the catch?

yu kan ask, but l dont thank yu will get.

You can always try and l stress try to renegotiate your interest rate Whether you get it lowered is another story. If you have a great credit score and are current on all payments your mortgage lender may be more agreeable to a lower rate.

No.

you can ask for it, but it does not mean you will get it . your bank will run your credit and determined your risk level and see if you qualify for a lower rate . there may be some negotiating involved . do not get an interest only payment, though . it may be less, but you are not paying any equity on your home . that is how a lot of people end up in foreclosure .

well, l suppose you can always ask, but l would not get my hopes up.

you knew the payments and your income when you bought the house - if it is too expensive, you can always move.

The government has introduced the hope for homeowners scheme which could potentially reduce ur interest payments or even reduce the actual debt u have through debt forgiveness. The best advice is to contact ur lender or a counselling agency to discuss ur options.

As for the catch, the consequences of these options vary & can involve the government being entitled to a proportion of any appreciation in the value of ur house. l suggest u get professional advice before making any decisions.

Disclaimer:
The above r for guidance only & should not be acted upon without u receiving professional mortgage advice relevant to ur circumstances. To find an independent mortgage adviser please go to http://impartial.co.uk.