How will everyone pay off their capital ?

Plasticman

koexelek wrote: »

Not disagreeing with what you say, but the MAJORITY of people would go for the capital and interest mortgage.
You have to be pretty swithced on to invest your money safely ( net of tax) at a rate higher than that you are paying on your mortgage.
Most people are not that financially astute

Yes, we can agree on that one! To clarify, I have a repayment mortgage - I prefer the lower risk option!

eilidh_s

I have an interest only mortgage just now to keep costs down while I am building my house. Anything I overpay goes onto the capital so I worked out what the monthly payments would have been on a repayment motgage and if I have the money that month and I haven't spent it on a bathroom fitting or a kitchen cabinet I will overpay it. I amn't tied into the deal for any length of time so as soon as I have the completion certificate for the house I will be switching to a repayment mortgage as I would feel happier knowing that at least a wee chunk of the capital was being paid off every month rather han leaving it to fester away like an ulcer, especially in this climate when there are no hard and fast guarantees that your savings are safe!

adandem

Our mortgage is part/part. We did not get compensation and a lump sum on our endowment policies to save.

We have reduced the amount of our interest only part of the mortage to hopefully cover the shortfall.

SandC

I switched to repayment earlier this year, cashed in the endowment and paid that sum off my mortgage. I have ended up paying roughly the same in repayment as I was paying for interest only + endowment on the same terms, ie. 12 years left to go.

Had I had a bigger mortgage, however, this might not have worked out as well as it did. I did not get compensation because I didn't consider that I was missold the endowment when I took it out.