Switching from interest only to repayment

nipic

Hi all
Basically we were young  when we purchased our home and went through a mortgage broker who put us on an interest only mortgage due to the market being so high at the time and our financial position.  We are in a better position financially now(better paid jobs) and I would like to go on to a repayment mortgage but we have no savings and the house is worth about 20 grand more than the mortgage is.  Can this be done?

Any advice would be gratefully recieved.

Thanks!
 

getmore4less

Why not just start overpayments. 

Interest only give more flexibility as long as your lender has decent rates. 

dimbo61

If you use " whatsthecost " website you can input your outstanding balance, number of years left on mortgage or till your 60/67/68 and Interest rate and it will tell you how much you would need to pay each month.
Simply set up a direct debit for this amount with your lender.
You maybe in negative equity but it's still your home and better than renting.
As long as you make overpayments each month the balance will soon reduce and you pay less interest each month.

getmore4less

You maybe in negative equity but it's still your home and better than renting.

They said worth £20k more then the mortgage not less

nipic

We entered into it at a high rate and we are paying 407 quid a month on 108000. So does this mean that we can't switch to a repayment?

Thanks

Thrugelmir

Who is your current lender?

nipic

Halifax is current lender

Socajam

I switched from a endowment to a repayment when I had between 8 -10 years left on my mortgage - best thing I ever did
I kept the endowment until termination and received a nice sum which is now in Premium Bonds

nipic

Socajam said:

I switched from a endowment to a repayment when I had between 8 -10 years left on my mortgage - best thing I ever did
I kept the endowment until termination and received a nice sum which is now in Premium Bonds

Was that recently?

getmore4less

nipic said:

We entered into it at a high rate and we are paying 407 quid a month on 108000. So does this mean that we can't switch to a repayment?

Thanks

£407 on £108k is 4.5% thats higher than the normal SVR.
Halifax have a retention deal for 75%-85%LTV of 2y/3y 2.14% or 5y 2.33%

nipic

hi guys thanks for all your help. Finally  bit the bullet rang them up and got us a great deal on a repayment mortgage. Cant believe I've worried about this for years and it was relatively simple to sort out! I feel like a weight has been lifted!