I am in a quandry. I have posted here before, but the situation is I am on an interest only mortgage with Santander which ends in March, our only option with them is to go on th SVR, 4.79%. We have an endowment which is on track to pay off the mortgage in 11 years time.
My broker has suggested a Leeds mortgage, interest only 3.59% 5 year fix. This is very affordable, but I have started to worry what happens at the end of the 5 years if there are no interest only good rates out there. I have the option now to go on a repayment mortgage- the payments would be £393 a month more than we pay now, but if we both stop paying into our pensions we could just afford this. We would keep the endowment, and then use this to pay the mortgage off in 11 years. However, if I were in the situation of having to go onto a repayment in 5 years I think the monthly payments would be prohibitive.
It would feel quite risky to have to pay more at the moment, but even riskier if our payments go up in 5 years! Thanks.
My broker has suggested a Leeds mortgage, interest only 3.59% 5 year fix. This is very affordable, but I have started to worry what happens at the end of the 5 years if there are no interest only good rates out there. I have the option now to go on a repayment mortgage- the payments would be £393 a month more than we pay now, but if we both stop paying into our pensions we could just afford this. We would keep the endowment, and then use this to pay the mortgage off in 11 years. However, if I were in the situation of having to go onto a repayment in 5 years I think the monthly payments would be prohibitive.
It would feel quite risky to have to pay more at the moment, but even riskier if our payments go up in 5 years! Thanks.