Is now the time to Switch from Interest only to Repayment?

googlemo

Hi,

I have had a repayment interest only mortgage for the past few years however I'm slightly concerned that interest rates may start rising soon and I could be in real financial difficulty.

Would most financial advisors say to switch now to fixed repayment mortgage if you can afford to?

Also, If I switch to a fixed repayment mortgage for the full amount of my mortgage will payments reduce after a period of time or are they fixed for the full period of the mortgage? e.g. 160K mortgage - interest only is say 600 pounds per month with repayment currently working out at around £890 per month.

Any advice on the best thing to do for a single person on a steady income would be greatly appreciated.

Kind Regards,
googlemo

getmore4less

Why change, if you do you are commited to the higher payment

Just overpay.

What plans did you have to pay off this debt when you took it out?

googlemo

Originally I had no plans to pay it off as I only bought the house as an investment. But as the market valuation has decreased I have to live in this place for a while to come and my worry now is what if the interest rates increase on my interest only mortgage.

Any ideas on the best way to proceed are welcome!