Interest only mortgage

Rowec

Hi , I have a interest only mortgage but want to change to a repayment . My house is worth around £150,000 and I owe £116,000 , I am 53 so have around 12 years left to work , Any tips or ideas would be very welcome

getmore4less

Overpay like it was a repayment

dimbo61

Use " whatsthecost " and put in your mortgage amount, 12 years and interest rate.
Should tell you how much your paying now on Interest only and how much you need to pay each month to make it repayment.
£950 a month should get you close to clearing the mortgage after 12 years

LRmortgage

Or remortgage when possible into a repayment mortgage.

Thrugelmir

Can you afford to repay the mortgage in 12 years?

tlc678910

Hi,
just a note to be careful if you might be limited to overpaying only 10% of your mortgage each year without penalty. This is common in a promotional period like 2 year fixed/tracker but you are usually not limited if on a standard rate. If you aren't sure confirm with your lender.
Tlc

foxy-stoat

Buy £1000 worth of Premium Bonds every month for the next 9 years - you may be lucky and win a few £25ers.

E30M3

tlc678910 wrote: »

Hi,
just a note to be careful if you might be limited to overpaying only 10% of your mortgage each year without penalty. This is common in a promotional period like 2 year fixed/tracker but you are usually not limited if on a standard rate. If you aren't sure confirm with your lender.
Tlc

Good advice.
If this is the case then I would squirrel any money over the 10% into a savings account, then when you come to the end of your promotional period pay off a lump sum.