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Questions & Answers The Free Mortgage Advice Forum Remortgaging
Re:Interest Only -early re-payment (0 viewing) 
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TOPIC: Re:Interest Only -early re-payment
#548
Gilly (Visitor)

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Interest Only -early re-payment 8 Months, 3 Weeks ago  
If I pay off my interest only mortgage earlier than its current 20year term, lets say 5 years earlier.

Will I be asked to re-pay the capital at the end of the original 20yr term or at the 15 year point when I have paid off the loan?
ie - will I have the remaining 5 years left on the original term in order to find the money to re-pay the capital or will I be expected to pay that back earlier also?
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#553
Comparethemortgagemarket (User)
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Re:Interest Only -early re-payment 8 Months, 2 Weeks ago Karma: 0  
No, with an interest only mortgage you will owe the same amount throughout the whole mortgage term, although you will also be able to repay it at any point too. In year 1 you owe the full amount and in year 15/20 this amount will be the same. If you repay this at any point throughout the 20 year term, say in year 5 or year 15, your mortgage will have ended and you own the house outright.

http://www.comparethemortgagemarket.com
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Last Edit: 2011/09/05 20:54 By Comparethemortgagemarket. Reason: added info
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Devonte (User)
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Re:Interest Only -early re-payment 8 Months ago Karma: 0  
I think early repayment of interest of 5 years will give you the edge to make you debt fee 5 years earlier if you have 20 years mortgage. So you have to pay he rest of 5 years interest.
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