What should I do

spooky25

hi


Im having a bit of a problem with my mortgage at the second and was wondering what would the best way to reduce the capitall .


I need to reduce my £700 pound odd interest only payments down as quick as possible but after enquiring about paying a lump sum off of £12,500 it workked out that id only be saving just under £96 a month on my interest only payments, I have some savings ( overpayments) put by to make the overpayments but I dont want to deplete them in the first two years and use them all is there another way in which I could beat down the interest at all ? :mad:


thanks

spooky25

Trying_to_be_good

The only way to reduce the interest payments is to
a) reduce the amount outstanding (the capital); or
b) reduce the interest rate (i.e. re-mortgage).

Unless they'll let you take a payment holiday (in which case the interest will roll up to be paid later) there's no other way.

Whilst it might seem like the £12,500 payment doesn't save you much each month, calculate what it'll save you over the term of the mortgage and it will be a considerable sum.

Sorry to not be more hopeful.

ailuro2

Try and find somewhere for your £12.5K that earns more interest than you pay on your mortgage, otherwise you're throwing money away. £96 a month is 13% of your current payment- not to be sniffed at!

Our overpayment fund can be removed by us whenever we want- can you do the same with your mortgage? Put the £12.5K there to work for you, and move it when you find a better offer?