We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Remortgage from interest only
Siri_72
Posts: 3 Newbie
Hi,
Some help please…I have been on an interest only mortgage for some time and now need/want to start paying off the capital also. I do not have a lot of equity in the property but do have some savings which I could use to pay off some of the capital (not sure if I can??) in order to reduce the LTV% from a new lender to improve the rate. However as I presently have a 2.5% rate would I be better off staying put and investing any difference in some sort of 'endowment' instead?
Some help please…I have been on an interest only mortgage for some time and now need/want to start paying off the capital also. I do not have a lot of equity in the property but do have some savings which I could use to pay off some of the capital (not sure if I can??) in order to reduce the LTV% from a new lender to improve the rate. However as I presently have a 2.5% rate would I be better off staying put and investing any difference in some sort of 'endowment' instead?
0
Comments
-
Siri,
It depends a bit on your savings level. If you've got enough to cover emergencies, then you could use your savings to pay off some of your existing mortgage. It's as easy as sending them a cheque!
Alternatively, if your rate is only 2.5% (which is pretty good) you could make your money work for you by putting it somewhere where you'll get a better interest rate. TSB will pay 5% on £2000 (and you can have 2 accounts), Nationwide 5% on £2.5k, and Lloyds 4% on £5k.
HH.0 -
Just echoing what has been said above, a lot of it depends on your level of savings and also, what your LTV stands at, at present. Are you fixed at 2.5%, if you are and it is expiring soon, it may be worthwhile looking at other options.Mortgage and Protection assessor, don't take what I say as gospel, nor as advice.
Let's beat the fat cats at their own game :beer:0 -
Its lloyds std variable rate, I am unsure as to commit to a repayment plan or stick with the interest only and pay chunks off the capital when I can..?0
-
…sorry C&G.
Help!?0 -
Check if you can overpay without penalty.
If you can, that is probably the most flexible way to do it.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.2K Spending & Discounts
- 247K Work, Benefits & Business
- 603.6K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards