Advice please

jaynespain

I have around 15 years to run on an interest only mortgage with £114,000.00 outstanding. My payments are £391 per month. I also make overpayments of around £400 pm. Sometimes I can overpay by quite a bit more. Would I be better off on a repayment mortgage? I do like the fact that if I find myself very broke that I have the option of just paying the £391. I am with Halifax and would like to stay with them. When I look at my mortgage statement, it doesnt seem to come down very quickly. I am on Standard Variable Rate 3.99%. Can anyone advise?

Mortgage_Mark_2

Hi Jayne,

Nobody can really answer whether it would be better to be on repayment but you - I would never, ever, recommend anybody take out a residential mortgage without it being repayment, as you'll get a nasty surprise at the end of the term if you haven't been able to reduce the mortgage.

Bear in mind that if you do want to switch to repayment, it will be a whole new application as they're reassessing you as a 'risk' in a totally different way. You will likely however get a far better (based on the value of your property of course) interest rate than the 3.99% Halifax SVR...maybe even enough of a reduction to mean that repayment monthly figures are not that far off your existing payment?

jaynespain

Thankyou for that. I think I might call in to Halifax and see what they can offer me then. House value is around £250,000. I would love to be able to pay it off quicker!