Interest only with 1.5 yrs to go

WeareKroy

Hi
My fixed deal with Hx comes to end shortly. I will be paying off the repayment amount of circa £6k leaving £45k o/s Int Only part. The remaining period of the Mtgage is 18months. The Endowments I have running will just about cover the £45k on maturity. Question is - what deal to t/f the £45k int only onto - Hx will flip over onto 3.99% Var but are there better/possible options available?
Thanks for the help.

AnotherJoe

You'll have to search or ask a broker there are far too many variables. You might also consider going onto a repayment of longer term, perhaps five-ten years duration but on a two year fix (low interest rate) and pay it all off at the end of the two year period (if that's when your endowments matur that's how I read it but I'm not so sure now)

WeareKroy

Hi - Ive been told by HX..."you will not be able to extend the interest only part of the mortgage term. It has to finish when the endowment does. So if you tie yourself into a 2 yr deal when you pay off the endowment you will be penalised for the six months remaining because you would be paying off more than 10 Percent that you are allowed to".
If correct - wondering where I go now ?

Thrugelmir

Have you posted recently under a different user name? Your circumstances are virtually identical.

WeareKroy

not as far as I know ! - Unless the Mrs has been active !

AnotherJoe

WeareKroy wrote: »

Hi - Ive been told by HX..."you will not be able to extend the interest only part of the mortgage term. It has to finish when the endowment does. So if you tie yourself into a 2 yr deal when you pay off the endowment you will be penalised for the six months remaining because you would be paying off more than 10 Percent that you are allowed to".
If correct - wondering where I go now ?

Will they let you move without ERC to (say) a ten year repayment mortgage with (say) a 2 year fix? Which you'd intend to repay at the end of the two years buy you wouldn't tell them. If not then you are stuck really.