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part repayment /part interest only paying off lump sum
Ive_got_a_lovely_bunch_of
Posts: 27 Forumite
I have a part repayment and part interest only mortgage which finishes in 3 years but will have a larger interest only part outstanding.
I have an endownment policy but it wont cover the whole interest only amount .
the figures are
current balance £46k
interest only £35k
I want to pay some off say £6k now does it come off the interest only amount or the repayment amount.
thanks and i hope this makes sense
I have an endownment policy but it wont cover the whole interest only amount .
the figures are
current balance £46k
interest only £35k
I want to pay some off say £6k now does it come off the interest only amount or the repayment amount.
thanks and i hope this makes sense
0
Comments
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You tell your lender which sub-account you wish to overpay, the repayment one, or the interest-only one.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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Hi, I know this is a while later, but can you/someone tell me which would be better to pay off/down? I'm trying to suss a similar situation for my parents.
Thanks.0 -
it makes no difference if the rates are the same.
what matters is the actual payments made.0
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