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Should I pay lump sum off interest only mortgage before changing to fixed rate or after
Walruswalrus
Posts: 4 Newbie
Hi, I currently have an interest only mortgage which I would like to change to a fixed rate. I have been gifted some money to pay off a lump sum of the mortgage. Should I do it now whilst on interest only or when I change to a fixed rate.
0
Comments
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Now. Fixed rate mortgages typically have a limit to how much you can repay.1
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Immediately. The sooner you do the more interest you'll save.1
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I'd pay it off now too. Dependent on your mortgage and amount left, paying off a lump sum may take you to the next LTV band and you'll get a better fixed interest rate.1
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