How can I calculate mortgage payments on a part interest-only, part repayment basis?

Posted on 6 September 2007

I am trying to find a mortgage calculator to provide guidence to establish the cost at variance interest rates on a part interest, part repayment format - Can you help?


Terry I would use the one that we have online, the loan cost calculator, and just do it in two parts ie for a 200,000 loan, first do 100,000 mortgage on repayment for whatever term you are after, and then afterwards do an interest only one for the other £100,000.  Then you literally add the two answers together.

Most lenders will allow you to do this now, using any split you like, I only did half and half to be easier, it can be 60%/40% or whatever you like.

Another good way to keep payments down is to make the term longer, that way you don't have to put quite so much on interest only.

Katie

Category: Interest only vs repayment, Lower mortgage payments

 

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