I'm hoping to buy a house soon, and have been in touch with a mortgage advisor.
He's found me a mortgage. I wanted to get a repayment mortgage because it's easy to understand: "after 25 years I will have paid off the loan, and I will own my house."
Unfortunately the "repayment" repayments are a little more than I can afford so I may be forced to get an interest only one.
The mortgage is fixed for 5 years and is fully flexible, meaning i can over-pay if I have enough money.
Now, here is the bit I don't 100% understand:
Lets say the "repayment" repayments are £900 and the "interest only" repayments are £700
At the end of my 5 year period if I wanted to "upgrade" to a repayment mortgage, but had just been paying £700 a month, will I be £12,000 short? (5 years of £200 a month short)
If so, do lenders let you pay this off and "clear the slate"?
Also, if I managed to pay £800 a month for 5 years would I only be £6,000 short?
Any additional info would help too!
2007-01-10
01:57:20
·
8 answers
·
asked by
mr_sporty_spice
2
in
Renting & Real Estate