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Capital repayment
sheilanick
Posts: 141 Forumite
We have a 10year fix with Derbyshire (now someone else I think) taken out 2 years ago and fixed at 4.94%. It is split £83000 interest only and £70000 repayment.
We can repay by 10% each year and are considering making a capital repayment shortly. Does it make any difference which element of the mortgage this is offest against? ie the interest only element or the repaymane part?
We can repay by 10% each year and are considering making a capital repayment shortly. Does it make any difference which element of the mortgage this is offest against? ie the interest only element or the repaymane part?
0
Comments
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Pay it off against the interest only part as it means you will be paying less interest over the course of the mortgage. The IO element never goes down, whereas the repayment one does so you pay more interest as a result.0
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