changing from intrest only to repayment??

bikingbarney

do lendors let you do this??

my current fixed rate at 6.79% is due to end in november.

i have 124000 on intrest only at the moment.

when the fixed rate ends it drops onto halifaxs svr which is currently 3.5% .

i would like to change from intrest only to repayment mortgage.

is this classed as remortgaging or not??

or am i better staying on intrest only and overpaying every month.

im figuring that my monthly payment will drop by roughly half in november, is this right??

if i stay on fix rate and pay the same as i pay now will the extra money pay off the capital.

the reason i ask is that i might be in some negative equity when i come to remortgage so there wont be any deals on offer .

cheers

steve

koexelek

bikingbarney wrote: »

or am i better staying on intrest only and overpaying every month.

If they want to charge you to swap to repayment I'd be tempted to do that.
It will have the same overall net effect

Robert_Sterling_3

bikingbarney wrote: »

my current fixed rate at 6.79% is due to end in november.

i have 124000 on interest only at the moment.

when the fixed rate ends it drops onto halifaxs svr which is currently 3.5% .

I am figuring that my monthly payment will drop by roughly half in november, is this right??

if i stay on fix rate and pay the same as i pay now will the extra money pay off the capital.
Selective quote

Yes it will drop by roughly half.
Yes the extra money would reduce the capital outstanding.

bikingbarney

i think i am alowed to overpay by 10% is this of the motnhly payments or of the total mortgage??

CPS

I am interest only but overpay every month meaning essentially I am repayment but can change the amoutn I overpay by every month online. So, if I have a holiday or something I just go back to the IO for that month, all other months I overpay as much as I can. Provides good flexibility