Keeping interest only mortgage or not?

Teddysmummy

I want to borrow an additional 6,000 on my mortgage, but only possible if I agree to change the mortgage from interest only to repayment. I have 14 years left. I understand reason for this as I know these mortgages are like golddust but am really happy with the flexibility of overpaying on interest only and match it to repayment or more most months, so no issues with ending up with a debt at end. Can't afford to borrow the amount over a shorter term and need a new porch! Any ideas?

[Deleted User]

Unsecured loan?

dimbo61

Have you got a savings vehicle to pay off the mortgage in 14 years ?
You need to pay for the porch by saving up the money or taking out a loan.

jimjames

dimbo61 wrote: »

Have you got a savings vehicle to pay off the mortgage in 14 years ?
You need to pay for the porch by saving up the money or taking out a loan.

This is the key thing. How are you intending paying off the mortgage? If no plan then repayment is worth switching to so you have that certainty

getmore4less

Teddysmummy wrote: »

I want to borrow an additional 6,000 on my mortgage, but only possible if I agree to change the mortgage from interest only to repayment. I have 14 years left. I understand reason for this as I know these mortgages are like golddust but am really happy with the flexibility of overpaying on interest only and match it to repayment or more most months, so no issues with ending up with a debt at end. Can't afford to borrow the amount over a shorter term and need a new porch! Any ideas?

Should have had some emergency money aside anyway, could have dipped into that and topped up by stopping the overpaying for a while

get some unsecured money,
even a 0% purchase card will free up cash flow.
use the overpayments to reduce that and hope you can recycle

What does your cashflow look like.
How big is the mortgage?
Anywhere you can cut back for a couple of years?
...

pjcox2005

Teddysmummy wrote: »

I want to borrow an additional 6,000 on my mortgage, but only possible if I agree to change the mortgage from interest only to repayment. I have 14 years left. I understand reason for this as I know these mortgages are like golddust but am really happy with the flexibility of overpaying on interest only and match it to repayment or more most months, so no issues with ending up with a debt at end. Can't afford to borrow the amount over a shorter term and need a new porch! Any ideas?

This suggests you have been overpaying each month more than the interest element. How much is that excess payment you are making?


You could stop that and save the money instead to pay for porch without having to change mortgage. You could potentially speed this up by using a 0% credit card for the porch purchase (or equivalent monthly living costs).


Ultimately though, you'd need to keep in mind that you need to find this money from somewhere going forwards so you catch up with the "repayments" so you don't have a shortfall on the mortgage when the interest mortgage comes to an end and the capital is required to be paid off.