Mortgage interest-only

designsouth

At Bank rate of 0.5% what is reasonable monthly payment to Lender
on £250,000 on Interest-only mortgage.
250,000 x 0.05% only adds up to £1250 a year(£104 per month)
Am being charged £430 per month....is this reasonable/ normal
with other lenders?

clearing_out_my_pockets

Yes, this is normal. Are you on a fixed rate or a tracker?

irn_bru

My rough calc suggests you're paying about 2% which is very reasonable. You should count yourself lucky

dunstonh

Am being charged £430 per month....is this reasonable/ normal

What is your mortgage rate? The base rate has little to do with it unless you are on a tracker or SVR that follows the BBR.

dimbo61

The Bank of England base rate is currently 0.5% not the mortgage rate being offered by most banks or building societies.
You are paying between 2 and 2.1% on your interest only mortgage which is
A FANTASTIC RATE
But the question a want to ask is how are you going to repay the £250,000 DEBT ?
Rates are going to go up and I am guessing that the deal you have now wont be at that rate for long even if you are on a life time tracker.
When not IF rates go up so will your mortgage
2% = £416 a month
4% = £833 a month
6% = £1250 a month
8% = £1666 a month
You have a very mortgage deal
either overpay as you mortgage MUST have come down alot over the last 12 months or save into ISA,s and regular savers

surreybased

Hi,

Just want to echo what the others said - It's a good rate and you should make sure you overpay now as interest rates will go up.

What are you going to pay the capital (£250k) off? Do you have a separate saving plan?