Interest Only Mortgages

Westlea20

Hi. I'm pondering what to do. I took out an interest only mortgage abut 8 years ago to buy my ex husband out of the property. I chose this mortgage as at the time it was the only way I could afford to remain in the property. I was able to get a life time tracker mortgage that is 2% above base rate i think. Off the top of my head I can't remember. I have approximately 15 years left to run but not quite sure what I'm going to do at the end of it. I'm looking to do something about it now before I get myself into a mess. I would really like some advise. Do I make extra over payments to reduce the interest or do I try and change to a capital repayment (although I'm not sure I can afford the payments over only 15 years)? I'm really stuck to know what to do. I would be grateful for any useful advise.

dunstonh

what I'm going to do at the end of it. I'm looking to do something about it now before I get myself into a mess. I would really like some advise.

Effectively overpaying or going to repayment basis is the same thing and will have the same outcome if you were to go by the same monthly cost. i.e. if repayment basis cost you an extra £500 per month then this would be the same as deciding to overpay the mortgage by £500pm.

Every month you leave it, the monthly cost to get the mortgage cleared within the remaining time will go up. So, do this ASAP.

You could look to remortgage and extend the term and switch to repayment at the same time. A local mortgage broker can run through that with you.

TrickyDicky101

Your age, income, current property value and outstanding mortgage balance - all would help in offering you useful opinion.

Westlea20

Many thanks for your answer. It has helped me to understand one or two things and I'm now in a better position to take further action.