What interest would I pay monthy on this type of mortgage, borrowing £60,000, the whole of the debt being repaid on death?
2007-12-02 00:33:03 · 6 answers · asked by Kitty Katty 4 in Business & Finance ➔ Personal Finance
you really should think twice about having an interest only mortgage in the long term. you need to think about how you'd meet the repayments if you fall ill-long term or when you retire.
2007-12-02 10:30:17 · answer #1 · answered by swirlyblue1 2 · 0⤊ 0⤋
Depends on the interest rate. At 6% you would pay £300 per month. The cost of the life cover to repay the debt on death would be addtional, probably around £10 or £12 per month. Your only problem is that you will never pay anything off the capital and will still owe the £60,000 until you find the capital to pay it off.
2007-12-02 08:38:26 · answer #2 · answered by Ahwell 7 · 0⤊ 0⤋
It depends on the interest rate. At 6% the annual interest would be 60,000 x .06 = 3,600. The monthly payment would be 3,600 divided by 12 months = 300. Sorry, I don't have an English pound symbol on my keyboard.
2007-12-02 08:42:11 · answer #3 · answered by regerugged 7 · 0⤊ 0⤋
Ask the bank or society to tell you the monthly gross interest rate they charge you. Then divide the loan by 100 and multiply by that interest rate.
Eg, if the monthly interest rate is 0.5%, the monthly payments will be
60,000/100= 600x 0.5 = 300 pm
2007-12-02 10:53:25 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Depends totally on the interest rate you get quoted, shop around for the lowest rate you can get!
2007-12-02 08:37:28 · answer #5 · answered by dave_uk06 5 · 0⤊ 0⤋
repayment mortgages are the best .
2007-12-02 08:42:39 · answer #6 · answered by dexter 2 · 0⤊ 0⤋