1/2 interest, 1/2 repayment mortage

shortchanged_2

sd-apples wrote: »

thanks shortchanged. I didn't realise that you can overpay your mortgage.

That's also a good idea about having an ISA for saving the lump sum each month - less temptation not to pay. I hadn't thought about that either. I just assumed that if you were on an interest only you only paid the interest and had no other options.

No problem, just check your terms but it is very unusual for a mortgage not to have some form of overpayment terms.

holly_hobby

This is often referred to as a "Part 'n Part mge" i.e part repayment, part interest only, which don't necessarily have to be on an equal ratio split.

However, to effect a new part/part mge, the overall LTV will have to be within the lenders accepted criteria for an interest only basis.

Further to which, they will want to know what repayment vehicle(s) or plans are in place - in order to demonstrate responsible lending practices.

Hope this helps

Holly