INTEREST ONLY MORGAGE just temporary!

carlos700

I am unsure whether i have done the right thing.I had a repayment morgage for 25 years but because i wanted to stay at home with children until they have all gone to school i have switched to a interest only .The interest only will be for five years then i will have to go back to repayment.By switching it has saved us £150 a month which we need right now as there is only one income coming in the house.Our morgage is with Intelligent Finance if i go onto there website and put in figures for repayment morgage for 20 years is that what we will then be paying when i switch back to repayment?Or is there other hidden fees that i should be aware of

silvercar

Sounds logical, unless they charge you for switching between interest only and repayment.

going2die_rich

Obviously the repayment figure fees are on todays interest rates and in 5 years time they may be (mostly likely will be) higher than they are now so it's not a true picture of what you will be paying out.

If your mortgage product is actually defined as it'll switch then I think all your fees will be shown in your KFI (Key Facts information) document.

If on the other hand your plan is to switch in 5 years down the line you may have a "porting Fee" but this would depend upon whether you were in a tie in period of your mortgage.