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Overpay Interest Only Mtg or switch to Repayment?
staffie1
Posts: 1,967 Forumite
Hello!
Quick question for you.
£65000 outstanding on an interest only mortgage. (12 yrs left)
Interest Rate 3.5% SVR (Can overpay as much as I like).
Current repayments £300 per mth (this is not the exact figure btw)
If I overpay by £200 per mth, making a total repayment of £500 per mth (and guarantee that I will always overpay by £200 per mth), is there any benefit to switching to a repayment arrangement when the repayments will be the same i.e. £500 per mth?
Given the facts above, would I lose out in any way by not switching to a repayment mortgage?
(I would still continue to pay into my stocks & shares ISA which is the original repayment vehicle for my interest only mortgage, in either case).
Thanks!
Quick question for you.
£65000 outstanding on an interest only mortgage. (12 yrs left)
Interest Rate 3.5% SVR (Can overpay as much as I like).
Current repayments £300 per mth (this is not the exact figure btw)
If I overpay by £200 per mth, making a total repayment of £500 per mth (and guarantee that I will always overpay by £200 per mth), is there any benefit to switching to a repayment arrangement when the repayments will be the same i.e. £500 per mth?
Given the facts above, would I lose out in any way by not switching to a repayment mortgage?
(I would still continue to pay into my stocks & shares ISA which is the original repayment vehicle for my interest only mortgage, in either case).
Thanks!
If you will the end, you must will the means.
0
Comments
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Thrugelmir wrote: »Paying off debt quicker is a positive there are no real negatives.
Absolutely! Would I pay it off quicker staying with IO mtg and making overpayments at the same rate as a repayment mtg?If you will the end, you must will the means.0 -
If you change to C&I there will be a fee to do so, so If I was you I would just start the overpayments on top of the IO payments.0
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