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Repaying interest only mortgage
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mrs_T_3
Posts: 4 Newbie
Hello everyone,
Mr T and I are thinking about the possibility of selling our house and moving to a quieter (and cheaper) area. We currently live in the SE England and our house is worth in the region of 300k. Our mortgage is interest only and we borrowed 150k. I thought we only had to pay back the money we borrowed - plus any fees they charge for early repayment etc etc - but my other half thinks they might charge some of the interest we won't be paying because of the house sale. Does anyone know how repaying an interest only mortgage early works? We just need to have an idea so we can see if our plan is financially viable.
Thanks in advance.
Mr T and I are thinking about the possibility of selling our house and moving to a quieter (and cheaper) area. We currently live in the SE England and our house is worth in the region of 300k. Our mortgage is interest only and we borrowed 150k. I thought we only had to pay back the money we borrowed - plus any fees they charge for early repayment etc etc - but my other half thinks they might charge some of the interest we won't be paying because of the house sale. Does anyone know how repaying an interest only mortgage early works? We just need to have an idea so we can see if our plan is financially viable.
Thanks in advance.
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Comments
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You'll only repay what you owe plus any product/mortgage redemption charges. There'll be an adjustment for interest to take account of the actual redemption date.
Mortgages aren't the same as personal loans.0 -
Call the lender and ask for a redemption fee.
You will owe what you borrowed plus any contractual fees.I am a Mortgage AdviserYou 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.0 -
Many thanks for your replies - very helpful!
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