mortgage repayments

[fishing81]

my daughter has a mortgage for £100,000 and it will be up for renewal in june does anybody know what the difference would be in payments if she had a interest only mortgage instead of a repayment one

[redcrx]

depends on the provider and what their rates are.

She would also have to get something to cover the main part of the mortgage like and endowment or something so that cost would have to be taken into account.

[bednobs]

impossible to say seeing as you haven't said either what her repayments are now, what interest rate she haS got or will be getting!

[ummmm]

With repayment mortgage you have to have life insurance in place.

[factor-fiction]

And of course with interest only mortgages you still have to pay off the capital sum at some stage, and overall it's usually more expensive because, unlike a repaymeny mortgage, the outstanding balance (and hence the interest) isn't reducing each year.