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
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.
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.