Overpaying an Interest Only Mortgage?

us,thecat&thedebt

im buying my first property.. (due to complete march)

taking an interest only mortgage as i dont know if i can 100% commit to the repayment element yet..

can i still throw any extra cash at it?

lizzyb1812

Depends on your terms and conditions. Easiest way to check is to ask your lender - you can guess based on the info on here, but your lender will give you the proper info you need. If you can't make capital repayments for a number of years (or ever) then look at the best interest savings accounts and put your extra cash in them

lizzyb

Pammur_2

us,thecat&thedebt wrote:

im buying my first property.. (due to complete march)

taking an interest only mortgage as i dont know if i can 100% commit to the repayment element yet..

can i still throw any extra cash at it?

As well as checking T&Cs and phoning the lender, I suggest that when you do send ad hoc money to repay the mortgage, that you send a letter specifying this must be set against the Capital. You would think it would be obvious to the lender, but I remember reading to do that on one of the MSE threads somewhere. Also, be careful about the amount you send - I am only allowed on my interest-only mortgage to repay 10% per annum. Good luck with it all!