Interest only - what are your views?

[NKF]

Is it a total disaster (unless you expect to inherit sufficient to pay off loan)? I know many people who've done it and while I admire their courage (and often the places they get to buy), I'm not sure.

Stoozing I mean.

We are going to offset at the end of the year when we're out of the 3 year tie in as well.

Offsetting and overpaying every month?

Can you get a fixed rate on an offset?

we have interest only due to size of our mortgage. we do have a repayment vehicle, but it won't pay off the whole amount. Planning to change to repayment in a couple of years, when we can more afford it. don't think I could do offset - not financially disciplined enough!

When I go back to work all that money will go to pay off the mortgage. We have only dh's wage now and do fine so mine will go to some good use.

I think so but they are usually a higher rate. We remortgaged recently and the broker's advice was that offset mortgages work best if you are going to be staying in a place for some time.

We also had a large deposit on our house.

Are you happy that all your earnings will just pay for a mortgage?

I'm only an amateur stoozer. Practising for the offset, pay off mortgage early period. Not really an interest only type at all.

Calculated daily is pretty much the norm these days though. Isn't it?

That's what I was thinking annie mac so if interest rates are crawling up...unless you leave most of your salary in your bank account for the whole month...

We share money anyway and have a joint account so it doesn't bother me that all my earnings would go towards paying off the mortgage. It works out much better that way as it could be paid off in a few years and then we'll be savings the monthly outgoings and interest.

I thought with an offset you had one account. Your mortgage and your bank account being the same. And so your mortgage goes down by the amount of your salary every month thereby saving masses in interest.

No difference? You mean in the rates?

Apparently offset accounts are pretty scary. Because you can call up your statement online and look at it. And it will show your debt. You look at your mortgage every day. If you want to that is. My fanatical friend does. Says it keeps him on the straight and narrow.

You pay more each month on repayment. A lot more. And in the early days, most of the monthly payments pay off the interest. As time goes on the ratio of interest to capital repaymetn changes.

i agree with ou Fio