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Interest only mortgage - extra payments

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PinkCosmos Fri 30-Sept-22 14:37:30

We have an interest only mortgage. I have been saving money so that I can pay off a lump sum, especially now that interest rates are going up.

Does anyone know how much I can pay off in a lump sum. I can't afford to pay off the whole mortgage and don't want to change to a repayment mortgage, especially at this moment in time.

I think it is 10% of the outstanding amount per year but can't find any info to confirm this. Is this the financial year?

I don't want to ring the general bank number as I know I will 2000th in the queue waiting to be answered hmm

Hope someone can help.

Thanks

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Germanshepherdsmum Fri 30-Sept-22 14:40:00

It depends on the conditions of your mortgage. You will have a copy of them. No single answer. Also consider whether you’re on a fixed rate and if so for how long.

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Blossoming Fri 30-Sept-22 14:48:28

It’s usually 10% each year, but as GSM says it depends on the conditions of your mortgage agreement.

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PinkCosmos Fri 30-Sept-22 14:50:55

Thank you. I will have a look for the mortgage contract and check

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mumofmadboys Fri 30-Sept-22 17:01:52

Years ago we had an interest only mortgage and could pay off lump sums whenever we wished with no restrictions

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