Intrest only but want to change to repayment

nuttyarab

When I 20 years old (now 35) I had some money saved so brought a run down property but because of my age and being a single parent the only option I had was to have my dad on the mortgage and could only have intrest only.
Now 15 years on my circumstances have completely changed. My dad is now retired and I'm now self employed (3 years). My accounts are not good enough for me to change to a repayment and obviously my dad is not helping by being retired.
In 10 years my mortgage term will be up so understandably I'm wanting advice if anyone can offer any?

ViolaLass

Does your deal allow you to overpay? Can you afford to overpay? Then you could effectively have a repayment mortgage without being tied into the higher payment.

flashg67

Put the difference aside every month, & don't touch it. Wait until you are able to remortgage, you're still young enough

pramsay13

To get an interest free mortgage did you not need to prove you would be able to pay off the capital at the end of the term?
Assuming the property is no longer run down and worth more there will be more equity in it so you might still be able to get a mortgage.
Have you spoken to a mortgage broker?

Sarastro

Keep saving as much as possible until you can remortgage.

nuttyarab

pramsay13 wrote: »

To get an interest free mortgage did you not need to prove you would be able to pay off the capital at the end of the term?
Assuming the property is no longer run down and worth more there will be more equity in it so you might still be able to get a mortgage.
Have you spoken to a mortgage broker?

No just wanted to see payslips, think I got in just before they went super fussy!
The property is now worth double to what I have outstanding so yes there is equity.
Have briefly spoken to a MB who said come back when I have 3 years worth of good accounts (easier said than done with a new business)

ViolaLass

Are you on the SVR at the moment then? Or on a long fix?

getmore4less

Just overpay now. within the limits of any penalty.

Why commit to a contractual higher payment when you can have a lower one and manage it yourself?

Look at your current lenders retention deals for lower rates so you can pay it off quicker.


stick your amount owing and the rate in a calculator to work out how much you should be paying/saving.

http://www.whatsthecost.com/mortgage.aspx



Does your dad live with you or not?
If not did you get tax advice when you did this deal as there may be a CGT bill looming on sale.