Mortgage advice?

[yourdj]

Mortgage advice?

I am on an interest only mortgage, but want to move to repayments and pay it off as soon as possible.

Any advice on this or know any good advisers.

Ta.

[Andy Collins]

now is the best time to pay in as much as you can with the interest rates so low. I was on interest only, but as soon as the interest rates started to lower - I went repayment.

Speak to your mortgage company.

[ppentertainments]

Talk to your mortgage advisor you are with - word of warning though, don't pay your mortgage off completely. I done this and it is very hard to get another one. I have since been told to keep about 8k interest only on your mortgage then it is easier to reborrow especially being self employed.

[TonyB]

You may be allowed to make capital repayments even though you are on an interest only basis so as Andy says, check with your mortgage company. If they allow it then its a better way of doing it as you can pay what you like when you like.

[wensleydale]

Depends if you actually want to remortgage or just repay your existing one.
If looking to remortgage try London and Country who are an independent broker.
If repaying exisitng mortgage give your provider a call.
You can often pay 10% per year if you are IO or a fixed amount per month.
Rather than switching to repayment it is often better to stay IO and overpay, as if you change to repayment you may not be able to switch back.

[wensleydale]

Also worth checking that you cant get more in savings than the rate of the debt you are reducing. Eg Isa.

[yourdj]

Cheers guys. Not really interested in cash savings over the long term as interest rates are not that brill anyway.
With the rate of inflation it will not be worth much in ten years anyway.

Just want to own property and perhaps gold or something and ditch the cash.

I will ask the company I am with as all they need is a month notice, but feel I could get a better rate. I want one where i can pay off as much as I want.

Thanks for the advice on leaving a bit at the end too.

I am at a good stage at the moment in business and with most things you never know how long that will last so want to get investments in while I can.

[NKR]

The banks will not let you back on an interest only mortgage unless you have a clear and evidenced investment plan to pay off the capital element of your loan. This will contiunue to get tighter going forward and its about time too really.

So be wary of coming off interest only unless you are sure you want to continue on repayment going forward.

[wensleydale]

Cheers guys. Not really interested in cash savings over the long term as interest rates are not that brill anyway.
With the rate of inflation it will not be worth much in ten years anyway.

Just want to own property and perhaps gold or something and ditch the cash.

I will ask the company I am with as all they need is a month notice, but feel I could get a better rate. I want one where i can pay off as much as I want.

Thanks for the advice on leaving a bit at the end too.

I am at a good stage at the moment in business and with most things you never know how long that will last so want to get investments in while I can.

My point about the savings was that you may be able to earn more in interest than pay on the mortgage- ie my mortgage is 1.25% but I can get 3.5% in an Isa, so I'm 2.25% better off not paying off the mortgage.

[soundtracker]

My point about the savings was that you may be able to earn more in interest than pay on the mortgage- ie my mortgage is 1.25% but I can get 3.5% in an Isa, so I'm 2.25% better off not paying off the mortgage.

But not in real terms i.e adjusted for inflation.