help please

phoneguru_2

i have a intrest only mortgage £24.000. paying £145 a month need to lowere it without fees, very best ideas please !!!!. i have some savings £6,0000 is it better to reduce balance or try get cheaper payments,,, help please

cat4772

Phoneguru, Hello and welcome.


What interest rate are you paying on the mortgage? If this is more than the interest earned on the savings, then use savings to reduce the capital.

10 years ago my husband's mortgage was interest only and we had some savings, which we used to reduce the capital. Then we converted the mortgage into repayment (think we had a £50 fee to pay) and the repayments were not much more than interest only payments (though he had 19 years left to pay).

How long do you have left on the mortgage term? Continuing to pay £145 a month (even after you have reduced the capital) would mean that you are repaying capital as well as interst on the mortgage.

It would be worth visiting a few mortgage brokers / experts for their advice.

Good luck

Cat.x

moneymabel

Hi phoneguru,
people may be able to help you on this thread but you'll probably get more answers if you post on the mortgage free wannabee thread. best of luck with reducing your payments.