Choosing a repayment vehicle

choccybuttons

Hi

Due to a number of reasons we have an interest only mortgage that has 19 years left to run. Im trying to choose a repayment vehicle as being extremely naughty we never had one (usual story of supposed to be couple of years interest only but then redundancy, negative equity ect).

Wondering what the best choice would be?

We know we probably wont be able to pay off the full capital but figuring to pay off as much of the capital as we can afford, then remortgaging (when we have paid off the negative equity) or ultimately down sizing at end of term if needs must.

Many Thanks

Wh05apk

Can you extend the term to make repayment more affordable?

Failing that set your budget and make part of your mortgage repayment to fit the budget, in the current economic climate, the chance of getting an investment to out perform your mortgage is slim.

opinions4u

The most effective repayment vehicle, with a remarkable 100% success rate, is a repayment mortgage where the borrower makes all their payments on time and in full.

dunstonh

Wondering what the best choice would be?

In this market none. All repayment vehicle options would either be high risk or more expensive than switching to capital and repayment basis. So, that latter is what you should do.