We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Advise on interest only mortgage
zenshi
Posts: 1,142 Forumite
I have 75k on mortgage. 26k on interest only since endowment policy paid out with a big shortfall, the rest is on repayment
I have a phone interview with my mortgage provider tomorrow as I wish to take a fixed rate deal. On speaking with them last week, it was strongly suggested that they want me to put the interest only part onto repayment. This will not save me much per month, if any
My plan was whatever money was saved per month would then be paid of the capital owing. I have more than enough equity in my house to repay on my planned retirement when I will downsize. That wasn't acceptable they said
Is his due to the new affordability checks or certain mortgage providers rules?,
I have a phone interview with my mortgage provider tomorrow as I wish to take a fixed rate deal. On speaking with them last week, it was strongly suggested that they want me to put the interest only part onto repayment. This will not save me much per month, if any
My plan was whatever money was saved per month would then be paid of the capital owing. I have more than enough equity in my house to repay on my planned retirement when I will downsize. That wasn't acceptable they said
Is his due to the new affordability checks or certain mortgage providers rules?,
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) £37,764
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) £37,764
0
Comments
-
In essence yes. Lenders have responsibilities too now. So will cover their own backsides.0
-
With the new deal you will now have the mortgage on repayment and be mortgage free at the end of the term.
Happy days, You can decide if You want to downsize in a few years Not be forced to by the bank0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.1K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards