Part payment & Interest Only

JJIBOGU

I am stock on the SVR currently 4% with Halifax with a part payment and interest only mortgage. Halifax having one of the highest SVR'S in the market and no better offers. I am thinking of switching to 100% interest only and pay the difference between what I am paying now as additional payment I am however confused if this will reduce my mortgage on the long run or not. Any advice will be helpful.

CLAPTON

if the interest rates are the same and you're going ot pay the same monthly payments then, unless there are fees etc it makes no difference.

JJIBOGU

Thanks for your post Clapton, no there are no fees involved or other related fees since I am at the moment on the standard variable rate. Thanks again for the info.

Trying_to_be_good

Do you have a plan for how to pay back the part that is on interest-only? I would be inclined to change more of the mortgage to repayment, or overpay the interest-only element, as you know for sure that will be paid off.

JJIBOGU

Thanks trying to be ..., at the moment I am on 75% repayment and 25% interest only, came to this rate from 100% interest only. The interest only amount is not too much to get paid off at the end of the mortgage period however got your point to reduce the interest only amount.
Good point.