Those who don’t have enough savings to repay their mortgage capital will need to look at alternative options, such as switching to a repayment mortgage, where both interest and some of the capital are paid back every month.
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This will mean higher monthly payments but provides peace of mind that there won’t be anything left to pay back at the end of the mortgage term. Taking action sooner rather than later will help reduce any increase in payments and make a shortfall easier to deal with in the longer run.
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Facing steeper monthly payments may seem daunting if you’re switching from an interest-only to a repayment mortgage. The good news is that thanks to current low interest rates there are plenty of mortgage deals to choose from. Seeking out the best possible deal could mitigate the higher cost of switching some or all of your mortgage to a repayment basis.
One of our brokers can help to look at your options and work out the most competitive rates for your circumstances.
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