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getmore4less

Which lender, some here may have an idea of the lenders policies.

Are you sure the rate is going up what is the SVR.

Thrugelmir

You'll need to have a repayment plan for the mortgage, even if you switch to interest only.

What's to say your financial position will have improved in a couple of years time. Interest rates may have risen in that time frame.

Ideally you should make payment of your mortgage your top priority. Suggest you review your household budget thoroughly and economise where ever you can.

If you switch to the new 2 year fix then you will have more disposable income, and will continue to reduce the mortgage balance.

fflump

If your mortgage is at 70% LTV you have the option of remortgaging to a completely different provider on a significantly better rate than offered by your provider?

For example, you can fix for 5 years with first direct at a rate of 3.89%. This would lower your payments?

By they way-who is your provider and what is their SVR? You seem to be saying that it is more than 5% which I find very surprising. Do you know whether they regard your mortgage as 70% LTV or have they downgraded this figure in the light of house price falls?

You should also ask yourself whether a period of historically low interest rates is actually a good time to be paying off the mortgage-not going interest-free. Rates may be higher in a few years and that, coupled with going to repayment, could be very painful.

Having said all this, its unlikely your provider will let you go IO. But before you move mortgage you should ask them what deals they have on offer (i.e. other than your SVR)