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

sammyjammy

If I was interest only mine would be £22.50 per month.

casper_uk

KKevin wrote: »

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

Doesn't that mean though that what ever the rent is, you have to pay tax on what ever is left after the £70 IO mortgage payment?

jayremoh

if my mortgage was so low, id throw a load of money at it while is could and pay it off.

Peelerfart

jayremoh wrote: »

if my mortgage was so low, id throw a load of money at it while is could and pay it off.

And that's exactly what I'm doing

:j

jayremoh

same here, shame its not that low...

hansi

Blimey, I thought mine was low, £130pm on a 25k mortgage but then I am stuck into a fixed rate of 5.99%. But it's only till May 2010, and I can't overpay because of the penalty charges:mad:

minimike2

I am paying £18.18 a month on my £114k mortgage (interest rate of 0.19% at present)

cash-magnet

I have been paying 37 pence a month for the past 6 years and this mortgage ends in May 2011. As this is an interest only mortgage I will still have to pay off the capital I owe, but as I had been making regular over-payments, this dropped down to just £72 many years ago.

My interest rate has dropped from 7.4% to 2.5% in this last few months and I'm still paying that damn 37 pence as the fall wasn't enough to drop the interest charged by a whole penny. Just goes to prove that falling interest rates don't always mean a drop in your monthly payments.

I keep this mortgage running as it is the only debt I have so this maintains my record as being a good payer on a debt and will help if I apply for a new mortgage once house prices have fallen a bit more.

Mr_Stroopwafel

Robert_Sterling wrote: »

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.

They showed me the letter from the bank, it must be an interest only one. I ask because I have about 20,000 that I could put towards a buying and thought if repayments are that low I am much better off buying!

TroJon

Could also be a long term mortgage. £100,000 spread over say 40 years, as an interest only mortgage, can lead to some really low figures!