We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
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
-
Now. Fixed rate mortgages typically have a limit to how much you can repay.1
-
Immediately. The sooner you do the more interest you'll save.1
-
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
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.6K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards