mortgages

birascreek

Is it better to get a repayment mortgage and have less spending money or is is preferable to get an interest only mortgage, have more spending money and not raid the savings accounts?

jonesMUFCforever

Interest only means you pay interest on the whole amount of the debt throughout the term AND you have to repay the capital at the end!

IMO a no brainer really. Pay back capital and interest!
By all means keep a chunk of savings back for emergencies.

djbd1973

birascreek wrote: »

Is it better to get a repayment mortgage and have less spending money or is is preferable to get an interest only mortgage, have more spending money and not raid the savings accounts?

I agree with ejones - if you have interest only you need to have a plan to pay back the capital at the end of the term and afterall, your mortgage is a debt you have to pay back.

Have a read through the mortgage threads in their own section and you will get some good ideas.

Glad

Hi, Martin’s asked me to post this in these circumstances: I’ve asked Board Guides to move threads if they’ll receive a better response elsewhere(please see this rule) so this post/thread has been moved to another board, where it should get more replies. If you have any questions about this policy please email [EMAIL="abuse@moneysavingexpert.com"]!!!!!![/EMAIL].