Hello all. Anyone knowledgeable out there with some advice please I would be v. grateful. We have a part interest only, part repayment mortgage, taken out to give us a bit of breathing space in the first few years of the term. We are now paying the amount which would be the same as full repayment as calculated by the mortgage company. As we are six years into a 25 year term, and our fixed term as 5 years we are now in the very fortunate position to be paying a 1.75% over the BOE base rate for the life of the mortgage. I realise if the base rate goes up then our mortgage goes up.. The mortgage was done through a financial adviser, for one reason and another, I don't want to go back to them to ask this question. We are currently paying the 'extra' mortgage (to take the figure up to the repayment figure based on the 5 year term) as a separate direct debit. This goes into the pot for 'interest only' currently. Does it matter which I pay off first? the Interest only bit or the repayment bit? Or will it all work out the same in the end assuming we do this for the life of the term. Don't want to be making a costly mistake. The mortgage company won't obviously give advice. thank you.
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