N Rock Flexi-Tracker Repayment & Interest Only

JustKeepSwimming_2

I have a Flexi-tracker for life mortgage (BOE + 0.54%) which still has almost 24 years to run. I borrowed £56025 (repayment) & £41000 (interest only), the plan being to sell my parents' house & pay off the interest only part fairly quickly.

However that "lump sum" may not be available for a few years, so my question is - would it be more sensible to convert the whole mortgage to repayment? I could afford the new monthly payments (with some flexibility if interest rates go up) & I don't have any endowments/savings etc. (except cash ISA) with which to pay off the interest only part should the plan with my parents' house change & it not be sold.

NR would charge me £75 for doing the change.

This is the first mortgage I have had, & I'm hoping to pay it off earlier by making overpayments when I can, which this mortgage allows.

Does anyone have any thought or advice please? Thanks!

kingkano

Why don't you just make the overpayments manually instead of giving them £75 just for making the change automatic for you?

I'd also add if your not using your isa allowance yourself, you might be better off taking the overpayments and saving them in a top isa (6% atleast) - as long as it continues to be more than your mortgage rate. - or in fact putting it into a product like the Halifax 10% regular savings account.

You can then pay the lump sum to the mortgage whenever you want