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Interest only mortgage & Overpay, Endowment or High Interest Savings Account
mrsmoneyworries
Posts: 102 Forumite
We have an interest only mortgage on £170k
Is it better to Overpay, to have an Endowment Policy or put the money into a High Interest Savings Account?
Any advice appreciated.
Is it better to Overpay, to have an Endowment Policy or put the money into a High Interest Savings Account?
Any advice appreciated.
0
Comments
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What rate of interest are you paying currently?0
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Interest rate is 2.5% for £165k
Interest rate is 2.25% for £5k0 -
May I just ask.....you have the capital to hand?LBM.....sometime in 2013 £27,056. 10 creditors
June 20.....£7,587.....3 creditors left 72% paid
£26,200 on interest only part of mortgage (July 16)...will chip away £17,103
£49,200 repayment mortgage ( July 16) £37,7640 -
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You borrowed 170 k on interest only rather than a repayment etc. Capital meaning do you have that money stashed somewhere to pay mortgage off without selling house.
I'm asking as I'm trying to move mortgages but having difficulty because I don't have 26k to hand, which is on interest only basisLBM.....sometime in 2013 £27,056. 10 creditors
June 20.....£7,587.....3 creditors left 72% paid
£26,200 on interest only part of mortgage (July 16)...will chip away £17,103
£49,200 repayment mortgage ( July 16) £37,7640 -
Ah, ok, I'm with you now. No, we put money aside each month but looking for something better (if there is such a thing!).
I'm sorry i'm unable to help you.0 -
So, in effect you are saving to achieve the amount borrowed for when you have to pay?!
Wish my mortgage provider was more flexible
I hope you get the answers you needLBM.....sometime in 2013 £27,056. 10 creditors
June 20.....£7,587.....3 creditors left 72% paid
£26,200 on interest only part of mortgage (July 16)...will chip away £17,103
£49,200 repayment mortgage ( July 16) £37,7640 -
Basically, yes. Although, I wish we'd have decided on a Repayment option.
I had no idea we could actually overpay. I only found out by reading the Annual Statement in more detail that usual.0 -
Is it possible to switch to Repayment?0
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chelseablue wrote: »Is it possible to switch to Repayment?
Not 100% sure tbh. We got a self-certified mortgage (DH is self-employed) and things have completely changed since since then.0
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