Change from Interest only to repayment

lee_d_m

Hi,

I currently have an interest only mortgage that I'm looking to pay off a lump sum and then overpay monthly.

I'm currently on the SVR with A&L and they've told me that I can pay off as much as I want in a lump sum and per month. Could any one confirm this is correct (as I thought there might be a limit)

Secondly, is there any reason to change from an Interest only to repayment if I was to overpay every month ? Would I pay more interest on the Interest only vs the repayment, A&L said I wouldn't but I just want to check with you knowledgeable people.

To help, I currently pay £799 per month, interest only. I would be looking to overpay £500-600 per month.

Just to add, I can't change my deal due to negative equity.

Thanks

Lee

Jenniefour

Great that you can knock off some of the capital. Look at your paperwork for the mortgage - or give them another ring to check whether there is a limit.

smitchy73

I see your on interest only, what are you paying on the ISA/endowment, or are you just paying the extra to the mortgage?

I think as Jennie above says, great that you can knock off the capital, but check the paperwork rather than depend on someone in the call centre I've seen on other threads, customers being told one thing and it gets near to changing and they are getting hits of a few thousand for fee's when they were told on the phone there were none. Or go in to your lender and do a face to face meeting, you can also see on screen details yourself or get print outs too.

Jenniefour

smitchy73 wrote: »

but check the paperwork rather than depend on someone in the call centre I've seen on other threads, customers being told one thing and it gets near to changing and they are getting hits of a few thousand for fee's when they were told on the phone there were none. Or go in to your lender and do a face to face meeting, you can also see on screen details yourself or get print outs too.

Yes, this is a safer way - and then if it's not clear you have the right part of the paperwork in front of you if you need to call and clarify something - and if you do need to call get name of person, make a note of it and the date and time.