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interest only mortgage
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caw76
Posts: 1 Newbie
can you tell me if a repayment mortgage cost 425 per mth and i pay 425 interest only per mth which is better to pay off faster, do i carry on interset only or is it safer to do repayment.:j
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??????????I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Not entirely sure what you're asking here,but repayment is safer because you know you will pay off the debt,at some point.Space available for rent0
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The cost of a repayment mortgage and an interest-only mortgage can't both be £425. Please clarify what you are asking as the question currently makes little sense.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Don't know if I'm missing the point...but do you mean:
contracted monthly payment is £425 for repayment.
If you were on interest only (so payment is less than this..for this example say its £225?) but you paid £425 (£200 being a monthly overpayment)
Which one of those options would repay the mortgage quickest??
If so, if your paying the same amount as repayment, but your only contracted to int only, it would have the same effect?
Repayment is always the 'safest' bet as you know come what may that debt will be repaid. Also, if you don't have a repayment plan in place then thats also something to think about?!
Really sorry if i've missed the point completely!!!0
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