Interest only - how do you repay the capital?

Voyager2002

I have an interest-only mortgage with complete freedom to make overpayments as and when I choose, without penalty. I appreciate the flexibility that this gives me, as compared to a repayment mortgage.

My plan when I took it out was to make overpayments of roughly the same amounts as the capital element of payments on a repayment mortgage. However, I have found that I can earn higher interest on cash ISAs than the interest charged on my mortgage, so that is the route I have pursued.

(Incidentally, since my mortgage is a tracker linked to the Bo E I am one of the few people around who is looking at a reduction in my interest payments at the moment!)

ixwood

For now. I'd save the tracker smugness until the end of the term. I personally think people are going to track into big trouble in the medium term and think there's been a worrying trend towards them in a now inflationary environment.

UK007BullDog

Retired_I.F.A. wrote: »

Bulldog, I apologise mate, To be honest I just saw red reading your first post.

Thanks, apologies accepted.

I never sold any endowments as I joined the mortgage world way after they were phased out.

I think if one specialises in a certain subject one can then do quite well. If one then finds other experts one could build a very good company where the customer can get best advice from lots of different advisers all experts in some field of finance.

Things are so complicated now, specialisation is required. I would then call all these niche specialists, super advisers, or even better super niche IFA's.

Waldir

elementelement wrote: »

Hi

I was wondering what type of mortgage this is and were you got it.
would be intrested in pursuing this type of mortgage for the time being

Sorry for not replying earlier.
Yes, as some already replied, it was Market Harborough's fixed, and it has been removed from their list very recently...

Last year there were a few of them, I think even one 1.85% for 2 years + 3 years tie-in. But it disappeared too early