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One off overpayment on a part repayment/part interest only mortgage
stewartm999
Posts: 2 Newbie
I am looking to make a one off overpayment on my mortgage which is part repayment and part interest only, both recently fixed on the same 5 year rate.
I can choose which part of the mortgage I want the overpayment to overpay on and was wondering which would save me more interest over that period.
Thanks
I can choose which part of the mortgage I want the overpayment to overpay on and was wondering which would save me more interest over that period.
Thanks
0
Comments
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Neither. They are both on the same rate.1
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So paying off part of the repayment (and therefore capital) bit of the mortgage won't make any difference to paying off the interest only part of the mortgage?
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What are your plans to pay off the Interest only part of the mortgage ?
Your repayment part will take care of itself over the 20/25/30 year term.
The IO part will mean you still owe that money when your approaching retirement.
Many people are finding this out to their cost.
Simple overpay off the IO mortgage0
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