Evidence Required Repayment Plan Interest Only Mortgage

BoyBach

JimmyTheWig wrote: »

If you can't afford more than the interest-only payments on the mortgage then this is probably a better plan than to wait a further 4 years to do so.

But if you are still happy with your original plan then I don't think you have to change that.
I'd write to Lloyds and say

and provide evidence of this amount.
33% saved up in the first 5 years of a 12 year mortgage sounds reasonable to me.




No, they don't want you to do this. If you've got the money sitting there they'll be happy. They just don't want to end up in the position come 2021 where you turn round and say you don't have the money to repay the loan and you didn't understand at the time that you would have to repay it.

[Though depending on the (net) interest rate on your savings, the interest rate on your mortgage and how much you think you need as a safety net if might be worth paying some of this off the mortgage.]

Thanks to everyone for helpful comments.!

stator

Have you done the calculations for an offset mortgage?

If you have such a large sum of savings you would be paying less interest if you offset them against the mortgage, but then you would be repaying the mortgage as well, so I don't know which would be better for you.

Thrugelmir

BoyBach wrote: »

Thanks for all comments, I think I will put my property up for sale, pay off the mortgage and and use the equity to downsize ready for my dotage.

Best to be proactive rather than buy lottery tickets in vain hope.