Bank of Scotland Mortgage

Deeping_Dave

Hi guys,

I've asked a question a couple of times but I'm struggling to explain myself so going to try again if I may. We owe 175k with 5 years left. It's been on interest only for a long time and obviously I know that can't continue. I don't want to turn it into a repayment yet until I can speak to my lender and extend(unlikely) or remortgage (if possible with longer term). I am in the position to pay off 10k next month as my work is going well. Would I be better off doing that to get the balance down a bit and attract less interest going forward until we can remortgage or extend? I've called them and the next time they can arrange a callback is mid March. The other problem I'm going to have is I am now paid mainly by dividends so affordability may be an issue for them? Or would I be better trying to save as much as I can and pay a bigger chunk off if possible in the future? There are no penalties for overpayments on my product. I need to work out how much the interest will drop each month with this 10k payment and whether it's really worth it? I hope that makes sense. Ideally i'd like them to give me a repayment mortgage and another 10 years on top to pay but I'm not hopeful.  

Deeping_Dave

I should add that I've used the online calculator from Bank of Scotland and an overpayment now of 10k would save me £1633 in interest over the remaining term. I assume the best thing to do would be to make as many overpayments as I can up until we negotiate a new mortgage as the balance will be less and may allow me to qualify for the lower amount needed?