How much on interest only?

livinginhope

We have a 109k mortgage with C & G,I think it's 4.39%,fixed for another 18 months,we are at the moment on a repayment mortgage,DH has asked me this evening if we should change to interest only for a few years to try and clear some of the debt,does anyone know what the payments would be (approx),we pay £607/month at present (we extended to 35 years 3 years ago) would changing to interest only make much of a difference?
Thanks in advance
LIH

Waldir

The monthly interests on £109k at 4.39% should be 109000*4.39/100/12=£402.05

livinginhope

Thanks waldir,realised after I posted this that I put it on the MFW board and not the mortgage board,didn't expect a reply,so thank-you.

Sloppy_Saver

Hi livinginhope, you may face a penalty if you change your mortgage from a repayment to interest only during your fixed rate period.

The penalty might end up eating away a chunk of the cash you free up by going interest only.

livinginhope

Thanks ss,did wonder if there was a penalty to pay,I don't have any of my mortgage documents as they were all destroyed in the fire,I don't really want to set foot inside Lloyds again,as they are our biggest creditor.Our mortgage was all arranged in the Lloyds branch,can you sort it over the phone with C&G directly? btw,we no longer bank with Lloyds.
Thanks again
LIH