repayment mortgage

kimmy40

we have an interest only mortgage .
our 3 projected endowments show:

2 x orange alerts
1 x red alert.

I am considering changing to a repayment mortgage for the rest of the 12 year term but do not know the procedure.
Is it a simple case of phoning the woolwich or do I have to reapply .

I have been overpaying to try and buffer the potential shortfall but I am ony allowed to repay 5% per annum which isn't putting enough of a dent in the capital for my liking.

kerry13238

have you checked your endowments are performing well if not you might get compo.one of my friends has just closed his and basicly he may as well have kept it under his bed for the last 20 years he has not had a penny of interest.

SandC

This might not be best for you but it worked for me. I cashed in my endowment last year, paid it off the mortgage and switched to repayment. Switching to repayment (Halifax) didn't incurr any charges but I did get charged for paying off a big chunk in one go - however the charges weren't too bad but my mortgage was small anyway which could make a difference for you depending on your situation.

My payments after that were virtually the same as I was paying for interest only plus the monthly endowment payments. The term remained the same, actually same as you, 12 years to go.

It's worth giving them a call and they will tell you what your options are.