BLT query

Littlealfiesmum

Hi have virgin money BTL 2.99% fixed for 5 years interest only £380.90 pcm

I am thinking of changing it to a repayment mortgage same rate etc they can just switch it and it would be £790.60 pcm. I am thinking getting the balance down would be good and I can also put a lump sum 10% overpayment down.

The outstanding balance is approx £150k

There would be a early repayment charge if I decided to go to a different mortgage I think its around £3k.

Other option is to sell the house and use the capital for something else...

ACG

You could just make overpayments to the mortgage potentially?
That way if the property is empty, you can go back to interest only without any hassle?

ps - I wont make any Sandwich jokes.

Littlealfiesmum

I think I could change back if needed but I have just relet the property about 4 months ago to a company and long term let. I'm not worried about that and in 5 years will sell it.

I have £13k in my isa I could pay off and probably save more paying off than getting interest in savings?!

Dont think there is any benefit overpaying a interest only?!

Littlealfiesmum

if i go on the MSE calculator I save quite abit changing to repayment and putting the lump sum down. Just means I don't have any income off the house to use monthly

ACG

By overpaying it has the same effect as putting it on repayment.

Switching back could possibly be done, but it is all the hassle that comes with it.