We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Interest Only Morgages

Simonsays_2
Simonsays_2 Posts: 40 Forumite
Part of the Furniture Combo Breaker
edited 27 April 2011 at 9:05AM in Mortgages & endowments
Hi, I currently have a Woolwich lifetime tracker Interest only mortgage which tracks the BBR +.29%. Therefore the current rate payed is 0.79%. I would like to overpay is this possible or what other options do you suggest?

Comments

  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Save money in savings accounts that pay more than 1%. When rates rise then transfer the money to the mortgage.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • ViolaLass
    ViolaLass Posts: 5,764 Forumite
    Don't overpay, put the money in a savings account that earns more interest. Overpay when the interest rates swap.
  • shortchanged_2
    shortchanged_2 Posts: 5,546 Forumite
    edited 27 April 2011 at 3:06PM
    I would suggest going onto a fixed rate 2 year deal with a £1000 fee @ 4.99%.








    Only joking, there are many cash ISA's around that are offering around 3% for 12 months. You can always transfer to another deal after this period.

    Nice rate by the way you jammy git.

    Also though have you got a repayment vehicle in place for your IO mortgage?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.7K Banking & Borrowing
  • 253.4K Reduce Debt & Boost Income
  • 454K Spending & Discounts
  • 244.7K Work, Benefits & Business
  • 600.1K Mortgages, Homes & Bills
  • 177.3K Life & Family
  • 258.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.