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lump sum repayment to mortgage- best deals
am72
Posts: 8 Forumite
Hi
My partner and I are purchasing a house valued at £375K. After selling his flat we have a deposit of £85K (LTV 74%) needing a 240K mortgage. But we hope to sell my current house in the next few months releasing a further £65k. Most of the best discounted deals seem to only allow a 10% overpayment each year... leaving us with a few years to pay of this lump sum on the mortgage. The other option is to get an offset mortgage or a fully flexible mortgage.
I'd love some opinions on what is likely to be the best way forward. To cut the initial costs down is it sensible to make the £65K portion interest only? I had a look at the IF website and they seem to insist that lump sums are directed towards the repayment portion first.
Thanks in advance for any help.
AM
My partner and I are purchasing a house valued at £375K. After selling his flat we have a deposit of £85K (LTV 74%) needing a 240K mortgage. But we hope to sell my current house in the next few months releasing a further £65k. Most of the best discounted deals seem to only allow a 10% overpayment each year... leaving us with a few years to pay of this lump sum on the mortgage. The other option is to get an offset mortgage or a fully flexible mortgage.
I'd love some opinions on what is likely to be the best way forward. To cut the initial costs down is it sensible to make the £65K portion interest only? I had a look at the IF website and they seem to insist that lump sums are directed towards the repayment portion first.
Thanks in advance for any help.
AM
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