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Interest Only Nortgage?

savvykaz
savvykaz Posts: 890 Forumite
in Mortgages & endowments
HI - can anyone give me some figures?

My mum is wanting to buy a property with an interest only mortgage.
The property is £145,000 and she can put down £30,000 so would need to borrow £115,000.
Can anyone tell me how much she would be paying back each month please?
DMP starts June 2012, £38,180.

Balance June 2015 £26,046 (paid off 32%)

DMP mutual support thread no 434

Comments

  • silvercar
    silvercar Posts: 49,654 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Interest only at 6% interest would be £575 per month. At 5.5% would be £527 per month. At 6.5% would be £623 pm.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • Rick62
    Rick62 Posts: 989 Forumite
    Why interest only - how is she going to pay the capital?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • absolutebounder
    absolutebounder Posts: 20,305 Forumite
    Rick62 wrote: »
    Why interest only - how is she going to pay the capital?
    Does it matter? If she has any sense she is probably going to use the wonder of free money from inflation. All my mortgages in the past were interest only.
    Who I am is not important. What I do is.
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