interest only mortgages

[steiff1]

we have come to the end of our fixed term, and have been making overpayments to reduce mortgage size. however, we need to freee up some money, so are thinking about going on interest only for a couple of years to release some cash to us to pay off outstanding loan debt quicker.

Is this a good idea, how easy is it to switch over??

[greaseweasel]

Probably better to arrange with Mortgage lender to reduce payments for a short period or remortgage for slightly higher amount to get a lump sum.

Some lenders even will lend you money at the interest rate of your current mortgage. Worth ringing them and asking.

Best not to allow mortgages to hang around longer than you have to, but depends on individual circumstances I guess.

[Mickey]

I had an option to take out a loan of £6k. This was added to the remainder of my mortgage over the 10 years i had left to pay for it. worked out about £60 a month better than a personnel loan. and added about £50 to my monthly payments. You just need to shop around and find the right deal for you. Try the many price comp sites out there for the best deals about. i use uswitch alot not just for money matters but for cheaper mobile phone tarrifs etc etc