interest only to repayment mortgage

T

Turion

Guest
Hi,


With all the recent interest rate cuts is it a good time to move from an interest only mortgage to a repayment.

I took out a tracker mortgage about 10months ago at 0.75% and agreed with the bank to have it interest only for 3 years to get on my feet.

If i was to change it can it ever be changed back to interest only.
 
Your going to have to start paying that capital back sometime - and now is probably the best time to start with these low interest rates. Although - there is also the option to pay amounts into a 7% regular saving account instead for a while - and then use the lump sum built up to pay off a lump sum on your mortgage later . But the temptation of spending the savings might be a problem?
 
A savings account where you have to pay in a regular certain amount in each month for a certain amount of time. They are known as regular savers - and many offer rates of 7% or more for example 8% at Anglo Irish . These rates of course may not be around for much longer...
 
Great. I was thinking of paying some capital off, but maybe i'll go the regular saver route, followed by a lump sum.
 
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