Someone I know pays only £26.10 a month on thier mortage!!...

Mr_Stroopwafel

Can someone explain how that works? Does it have to be an interest only one or something? I know the interest rates are low but that is crazy!

whu

If they owe only a very small amount and have a very low mortgage (eg tracker) then it is possible or if they have an offset with virtually the same amount in the offset as the mortgage amount

Robert_Sterling_3

How do you know that is what they pay.
Have you ask them why the amount is so low.
When a mortgage is due to end you might decide to leave a small amount owing. There are several reasons why people might do this.
I did it myself to remain a member of the Halifax Building Society until it became a bank. I then got one windfall for being a saver and one winfall for being a borrower. That was in the days when I was Building Society Bob at carpetbagger.com and Robert Shilling at themoneybag.com.

ronald208

I have a £40,000 interest only mortgage and I am paying just under £40 a month. Only 2 1/2 years to go and it is finished.:j

Ron

ILW

ronald208 wrote: »

I have a £40,000 interest only mortgage and I am paying just under £40 a month. Only 2 1/2 years to go and it is finished.:j

Ron

Does that not mean they take the house back in 2 1/2 years?

pinkpig08

ronald208 wrote: »

I have a £40,000 interest only mortgage and I am paying just under £40 a month. Only 2 1/2 years to go and it is finished.:j

Ron

What about repaying the capital? I don't understand, I thought you then had to settle the capital at the end?

Robert_Sterling_3

Perhaps it is an endowment mortgage.
Perhaps the eddowment will exceed £40,000
Perhaps anything ...

matphil

ronald208 wrote: »

I have a £40,000 interest only mortgage and I am paying just under £40 a month. Only 2 1/2 years to go and it is finished.:j

Ron

Do you mind me asking who your mortgage is with and how you are only paying just under £40 a month. The reason I would like to know is that my mortgage was originally £15,000 and I now have just under £8,000 left to pay. I am paying £97 a month on an interest only mortgage.

KKevin_2

Ive got a £69k buy to let intrest only mortgage and it has went from £300 to £70 in the space of 6 months or so :T

hearts

I have a 100k mortgage at £21 a month ;-)

ronald208

It is an endownment mortgage and I have endownments to pay it off. It is also a tracker with Halifax. I remortgaged about 3 years ago at .75% above bank base rate so now my rate is 1.25% :j

My house cost me £62,500 with a £22,000 deposit in 1991 and I was paying over £300 per month in interest when I bought it.

Ron