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Overpay an interest only mortgage or change to a repayment?
Freena
Posts: 1 Newbie
I have an interest only mortgage of £132K. I am about to pay £32K and have £100K interest only.
Am I better at this stage to change to a repayment mortgage over 10 years or pay £400 over my interest only payment every month - interest rate of 4.79% Not sure how to work out which is cheaper? Payment is £534 each month at present on the £132.
Thank you.
Am I better at this stage to change to a repayment mortgage over 10 years or pay £400 over my interest only payment every month - interest rate of 4.79% Not sure how to work out which is cheaper? Payment is £534 each month at present on the £132.
Thank you.
0
Comments
-
Makes no difference, the payment determines the cost/term.
Having the flexibility to pay a smaller amount is worth having.
£100k over 10 years @ 4.79% is £1050pm interest only is 400pm you need to find over £600pm not £400
Find a better rate that will save much more.0 -
Looks like you need to up your repayments to a far higher level to repay the debt in 10 years.0
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