which should I pay off the interest only part of mortgage or the repayment?

MissPennyP

I currently have a fixed rate mortgage on 150K, 50% repayment an 50% interest only until April 2024.  I have recently downsized and moved home and have 30K to repay.  I have spoken to the bank and I can repay 10% up until 31st December and another 10% in January 2023.  Do I repay the repayment part of mortgage, the interest only or a bit of both?  Or do I put in a savings account?

DullGreyGuy

Whats the plan for repayment of the interest only section?

GAMBITv5

Depends on if you’ve got a suitable repayment vehicle for the IO 50% really

K_S

MissPennyP said:

I currently have a fixed rate mortgage on 150K, 50% repayment an 50% interest only until April 2024.  I have recently downsized and moved home and have 30K to repay.  I have spoken to the bank and I can repay 10% up until 31st December and another 10% in January 2023.  Do I repay the repayment part of mortgage, the interest only or a bit of both?  Or do I put in a savings account?

@misspennyp Some of the factors to take into account would be what the rates (and fix lengths) are on the two parts, what the rate is Vs what you can get in a savings account, what the repayment vehicle is for the I/O part, etc.

MissPennyP

DullGreyGuy said:

Whats the plan for repayment of the interest only section?

ah, I don't have one so that may answer my question, thank you.  I just wondered if I paid off the capital it would affect the interest only part I was paying.  

MissPennyP

GAMBITv5 said:

Depends on if you’ve got a suitable repayment vehicle for the IO 50% really

ah, I don't have one so that may answer my question, thank you.  I just wondered if I paid off the capital it would affect the interest only part I was paying.  

MissPennyP

K_S said:

MissPennyP said:

I currently have a fixed rate mortgage on 150K, 50% repayment an 50% interest only until April 2024.  I have recently downsized and moved home and have 30K to repay.  I have spoken to the bank and I can repay 10% up until 31st December and another 10% in January 2023.  Do I repay the repayment part of mortgage, the interest only or a bit of both?  Or do I put in a savings account?

@misspennyp Some of the factors to take into account would be what the rates (and fix lengths) are on the two parts, what the rate is Vs what you can get in a savings account, what the repayment vehicle is for the I/O part, etc.

The rates are currently low as it was a fixed mortgage (for both parts equal) I took out earlier this year until 2024  I just wondered if I paid off the capital it would affect the interest only part I was paying.  I don't have a plan for the interest only part yet

K_S

MissPennyP said:

K_S said:

MissPennyP said:

I currently have a fixed rate mortgage on 150K, 50% repayment an 50% interest only until April 2024.  I have recently downsized and moved home and have 30K to repay.  I have spoken to the bank and I can repay 10% up until 31st December and another 10% in January 2023.  Do I repay the repayment part of mortgage, the interest only or a bit of both?  Or do I put in a savings account?

@misspennyp Some of the factors to take into account would be what the rates (and fix lengths) are on the two parts, what the rate is Vs what you can get in a savings account, what the repayment vehicle is for the I/O part, etc.

The rates are currently low as it was a fixed mortgage (for both parts equal) I took out earlier this year until 2024  I just wondered if I paid off the capital it would affect the interest only part I was paying.  I don't have a plan for the interest only part yet

@misspennypTo ensure that the lump-sum overpayment you make is applied to the interest-only part, do call and check with the lender in advance if it's not clear how to do this on the lender's online system.