Interest Only Mortgage

kiwi_al

Everything you read about IO's talks of having a separate saving repayment vehicle for the capital at term end. With a fully Flexible IO mortgage what is wrong with treating it like the equivalent Repayment mortgage and making the extra payment each month??? Thereby it would be fully payed off at the end of the term. This gives me full flexibility to overpay more or less when ever I like. I am very active in keeping an eye on my finances and realise I would have to recalculate the minimum over-payment if rates go up.
Your comments please??

dwsjarcmcd

The short answer is nothing! You have said that you are disciplined with your finances, which would be most peoples comment, the only other thing I can think of is that you need to ensure your mortgage product allows for overpayments to the level that matches a repayment mortgage.

David