Repayment or Interest Only?

piptom&AndyPandy

Hi
Just thougt I'd put it out there as a question, we've always been on I.O mortg. as an adverse borrower the plan was to wait 2 yrs and then switch to better deal - it didn't work. Now for what we paid on I.O at the start we can switch to repayment - but this is a cost of £200 extra. I'd really like an opinion...
It would be over 23 yrs and cost £100 admin charge.

Thanks
Pip

RAS

Confused. Are you saying that if you remortgage, the interest will be £200 less? Or it will cost £200 more?

piptom&AndyPandy

Not remortgaging but switching with current provider - £200 more!

X

RAS

Can you give us figures (rounded will be fine).

piptom&AndyPandy

On I.O £417 on Repayment this would go up to £640

RAS

Given the amount you have on other debt, and the APrs likely on that, I would think about chucking everything at that in the short-term. maybe reconsider next year?

What is you most expensive debt?

piptom&AndyPandy

Car loan but we've already gaged we can clear this by throwing extra £150 at it a month, but my parents raised me to always be on repayment might hold off for abit.