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Interest only mortgage with over payments
itgirlinuk
Posts: 465 Forumite
Hi,
I have an interest only mortgage and I am allowed to make 10% overpayment in a year.
I now have to renew the mortgage and I am wondering whether to leave it as interest only mortgage and do an over payment every month to match the repayment mortgage amount as I want to repay the debt slowly.
I want to keep it as interest only rather than convert it to repayment is because I have the control to change or stop my over payment as per my financial situation.
Does this make financial sense and/or what am I missing? It's a Buy-to-let mortgage if that makes any difference.
Thanks
Marie
I have an interest only mortgage and I am allowed to make 10% overpayment in a year.
I now have to renew the mortgage and I am wondering whether to leave it as interest only mortgage and do an over payment every month to match the repayment mortgage amount as I want to repay the debt slowly.
I want to keep it as interest only rather than convert it to repayment is because I have the control to change or stop my over payment as per my financial situation.
Does this make financial sense and/or what am I missing? It's a Buy-to-let mortgage if that makes any difference.
Thanks
Marie
The quickest way to double your money is to fold it in half and put it back in your pocket. :rolleyes:
0
Comments
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Based on the info in your post, I don't think you are missing anything.
In your place I would do the same - keep a BTL mortgage as I/O with the freedom to make up to 10% over-payment annually.0
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