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interest v repayment pay off
toffeeb65
Posts: 16 Forumite
£116,000 interest only and monthly £482
£20,000 repayment monthly £215 (129.00 is the capital)
£15,000 repayment monthly £155 (93 is the capital)
all have about 10 years left...also thinking of down sizing in about 5/7 years
the interest only part was always going to be paid off when the house was sold.
we are about to get £80,000 in pension lump sum pay off this off the mortgage and using it on the interest only part. but doing the figures it might be better off paying off the repayment part first and then keep paying full amount of monthly amount now and overpay the interest only part will be less monthly leaving a bigger monthly amount to overpay.
any advice?
£20,000 repayment monthly £215 (129.00 is the capital)
£15,000 repayment monthly £155 (93 is the capital)
all have about 10 years left...also thinking of down sizing in about 5/7 years
the interest only part was always going to be paid off when the house was sold.
we are about to get £80,000 in pension lump sum pay off this off the mortgage and using it on the interest only part. but doing the figures it might be better off paying off the repayment part first and then keep paying full amount of monthly amount now and overpay the interest only part will be less monthly leaving a bigger monthly amount to overpay.
any advice?
0
Comments
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I would find out rates from your lender and if you have any restrictions of overpaying and this will then help you to make the right decisionMortgage Aug 2019 161,000 :eek::eek::eek:Nov 2019 156,500:T Jan 2020 153,122:T, Apr 2020 149,500, Apr2021 139, 675, Oct 2021 136,823, Dec 2021 136,120🙂EF 0/12,000 (0%)😕 (5062.44 was ERC), Jan 2023 128,650. Our Mortgage is never going to be as high as it is today. :jOnwards and downwards to a better life for our family. :jJust keep swimming0
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The figures you've quoted suggest a rate in the region of 4.9% on the interest only part. Paying down this part of your mortgage seems sensible. While maintaining to pay and possibly overpay the other 2 parts of your mortgage. Ultimately will provide you with more equity when the time comes to downsize.0
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