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Interest only with overpayments vs Capital and interest
UKSBD
Posts: 842 Forumite
What difference is there between having an Interest only mortgage with overpayments and a capital and interest mortgage?
I'm renewing a 2 year fixed interest only Buy to Let
I asked about a capital and interest mortgage, was told they don't do them but that I could make overpayments (up to 10% of balance per annum)
This got me thinking, just what is the difference? other than I appear to have more flexibility (ie. don't have to overpay if I don't want to)
I'm renewing a 2 year fixed interest only Buy to Let
I asked about a capital and interest mortgage, was told they don't do them but that I could make overpayments (up to 10% of balance per annum)
This got me thinking, just what is the difference? other than I appear to have more flexibility (ie. don't have to overpay if I don't want to)
0
Comments
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If you're paying the same amount of capital, none.0
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Why don't more people do it?
Is it just because of the temptation of not making the overpayments if you don't have to?0 -
because the option is not offered by default on residential mortgage, you have to ask, and in some cased beg to go I/O.
BTL standard to go with I/O as first option.0 -
The less interest you pay. The greater the profit you'll make. The higher the tax you'll have to pay.0
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