Sat down tonight with the missus and worked out household finances. Despite recent pay rises for both of us and secure professional jobs, all that is left at the end of the month is the change you get in your pocket from a night out and a kebab. I worked out that the mortgage is the worst offender (up by an extra Â£200 due to the expiry of fixed rate) followed by childcare for 1 baby and 1 toddler (Â£500 a month). The childcare costs are unavoidable as they enable both of us to work although it may be cheaper with a childminder. The mortgage is in my sights. What are the pros and cons of switching to an interest only mortgage? This is based on the following theory: - what is the point of paying money into a market that is in freefall anyway? The bank may end up with both the money and the house (not quite that bad but worth thinking about). - why not put as little money into the house as possible and put some money elsewhere? This could be as a cushion to hide somewhere in the event that things ended up in the abyss with repossessions on every street, or as a sum to fund another house purchase to take advantage of lower prices? Is this completely deluded or financial good sense? I read a convincing article in the Telegraph that attributes the rapid fall in house prices to lower inflation - last time around, inflation was higher and the loss in value was masked.