Changing from Interest only to repayment mortgage?

getmore4less

If you can get a better rate then it is worth considering.

Don't forget to account for fees.

What did your advisor identify as the benefit to you.

Martin_Luther

Try to contact some consultant or do your research. Because what I think is , incase of repayment interest increases or decreases according to the market.

marmitepotato

How much is the repayment mortgage going to cost you to buy initially? You could use the money you would have spent buying a repayment product to lower your interest only mortgage. I'd stick with overpaying my interest only mortgage rather than going through the hassle and cost of buying a new product.

Jimbo1976

There are pros and cons of staying on interest only and switching to repayment.

The advantages of switching are that you would have a much wider range of lenders to chose from (a number of them don't offer interest only mortgages). So potentially you could save money by getting a lower rate and being able to remortgage easily. The other advantage peace of mind. You don't have to think about lump sum reductions, your mortgage will be paid off by the end of the term.

The advantage of remaining on interest only is flexibility. You are not committing yourself to a higher payment. You can pay extra off when you want to. If your income is lumpy ie you get bonuses commission or are self employed then this may be useful.

One "hybrid" option may be to switch the £6k part of your mortgage to repayment and keep the rest on IO.

ViolaLass

Was this a mortgage advisor at a bank or someone independent?

getmore4less

piece of mind.....DIY repayment does the same, it will be paid of without thinking(after you set up the regular payment).

OP how much is your mortgage, what term, interest rate and payment?