Talk

Flip

Find financial and money saving discussions including debt and pension chat on our Money forum.

Money matters

Morgage advice anyone?

3 replies

ssd · 11/06/2006 09:51

I'm planning to sell my 2 endownments next year and use the money to get an extention to my house.

But I can't afford the repayments on my existing morgage if I can a repayment only morgage. I don't want another endownment as we've lost £1000's on current one. Does anyone know of any other type of morgage that isn't repayment or endownment?

TIA xxx

OP posts:

Thanks

Report

crunchie · 11/06/2006 10:53

Not really tbh. You have a repayment where you are paying the capital as well as interest, and interest only mortgage where you are paying the interest BUT in 25 years you will need to find the capital in a lump sum which was where the endowments came in.

If you cannot afford a repayment mortgage, and want an interest only one, think about how you will find the £1000's of pounds needed to repay it in 25 years time. If you know you will suddenly have a HUGE windfall, the OK. But otherwise I would not do it tbh.

Thanks

Report

ssd · 11/06/2006 18:58

so is it only repayment or endownment then?

OP posts:

Thanks

Report

EvesMama · 11/06/2006 19:15

you can take out aninterest only mortgage (basically an endowment)..but just pay the interest.
mortgage company will ask how you plan to replay the full about in 25 years and that will be by sale of the house.
once you get sorted financially say in a few years, you could then change back to a repayment and get the mortgage paid off quicker.
hth