Overpayment on interest only V switch to repayment

chiff

Currently we're paying an interest only mortgage which we're pretty keen to move away from. It's fixed at 5.29% until end of March 2008. We're in a position to pay more than normal at the moment so...would it be better in theory to switch to a repayment mortgage until the fixed term is up and we look around for something better or to overpay the equivalent amount on our interest only mortgage until the same point next year when we look around.

Any help hugely appreciated.

firesidemaid

you need to have a look at the t+c of your mortgage.

if it is fixed there may be penalties on switching.

check and see if you lender allows capital overpayments ?not or ?once a year

if not, save your money in a high interest account until march 2008:D

chiff

The only penalty would be a £75 fee and they do allow repayments at any time.