Interest only mortgage with over payments

itgirlinuk

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

muhandis

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.