Is anyone paying off an interest only mortgage?

Wealthy_woman

Hey all,

Is anyone paying off an interest only mortgage?

MallyGirl

yep I am, when I am not adding to it

toerag33

On a buy-to-let but will need to remortgage when the time is up. We pay anything left over from expenses to it. Unfortunately that is now going to be swallowed up as our income has gone down and we have a huge shortfall to cover.

Wealthy_woman

Our balance is currently £210, 630.09 and we have 10 years to go. Starting to o/p from October (op £230) with the aim of adding lumps as an when and increasing the op. GE Money called me yesterday and said they now have a facility whereby I can overpay by any amount and it it not capped at a % per year and they will also send me their bank details so I can even pay in a quid.

In the past the best they could offer was 2 x monthly payment every other month (max 10%). As we don't have an endowment or other method of repaying the balance this is the most sensible way to get it cleared.

I feel a MF diary coming on....

XSpender

I am overpaying an IO mortgage. I am on the SVR so can overpay as much as possible.

My goal is to pay as much each month to repay the mortgage as if it was repayment instead of IO and complete at the same time as if it was always repayment. Hope that makes sense.

Ideally I would like to knock 10 years off that too.

I will keep an eye out for your diary:)

LE3

yup - deliberately took out an offset interest only when I bought the house as it suits my style of spending/saving
Each month I pay the tiny interest payment, a payment off the capital AND £250 minimum into the associated offset savings account. I currently have over 50% of the outstanding mortgage in the savings account which means I don't pay interest on that amount, but at the same time I'm not prepared to pay all that off the mortgage yet just in case something major happens & I need a new roof or something - for me it's about the balance between spend & save - I like my current compromise!

newgirly

Yes currently on IO and trying to op :rotfl: we will soon switch back to repayment though.

iquit

I'm on an IO mortgage.

Tahlullah

Yes I am and love the freedom it brings. You are only limited by your income and imagination.

originalmiscellany

Yes, we have an IO BTL and we're paying off as and when we can, for we know that in the future rates will hit a lot of people very hard so we're trying to prepare against these rates in advance. Only a small amount when we have free cash but it's the principle of not burying our head in the sand but being aware and dealing with it.

THe best thing you can do wealthy woman is to set up a MF diary and post often. It's amazing how it focuses ones mind.

sterlingstash

I look at my Interest only mortgage as a credit line which I wam unlikely to be able to get again. So to pay it down and lose it seems a bad idea, particularly when savings in the bank earn higher interest, (and investments much higher). For those with BTL, can;t you claim the interest as an expense to set against profits? If that is the case, why would you want to pay it down?