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unsure of new mortgage
spottydog1
Posts: 2 Newbie
Hi all,
im looking for some help. 3 years ago i bought my first house and was advised to have an interest only stepper mortgage. at present being on the third year we pay £867.00 interest rate being 5.9%. the bank has sent me a letter today because mortgage is due for renewal. it says that mortgage will automatically switch to rate of 2.5% which gives a new monthly total of £334.10.
my problem is should i now be getting a mortgage repayment one rather than interest only. also how would this effect the payments.
many thanks for any advice x
im looking for some help. 3 years ago i bought my first house and was advised to have an interest only stepper mortgage. at present being on the third year we pay £867.00 interest rate being 5.9%. the bank has sent me a letter today because mortgage is due for renewal. it says that mortgage will automatically switch to rate of 2.5% which gives a new monthly total of £334.10.
my problem is should i now be getting a mortgage repayment one rather than interest only. also how would this effect the payments.
many thanks for any advice x
0
Comments
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stay on 2.5% and pay £867.00 .....this will bring capital outstanding down considerably..............0
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