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my payment used to be £1008 a month but now its decreased to £425 a month because im on the standard variable rate mortgage.

why have my payments decreased by half and is it worth me doing something about it.
Obviously im happy im paying less but for how long will i pay less as im new to all this because its the first time ive bought a house two years ago.

i wont lose my home i hope because i dont understand the standard variable rate process.

thank you for your advice x

2 Thoughts on hi my fixed rate two year interest only mortgage came to an end last month,?
  1. Reply
    Eat_My_Shorts
    February 16, 2014 at 9:00 am

    convert the loan to a fixed rate mortgage… then you can be paying off some of the principle.

    Those IO loans are DANGEROUS.

  2. Reply
    Holly R
    February 16, 2014 at 9:54 am

    It is highly likely that your interest only loan NOW includes a negative amortization component. I don’t know for sure without seeing your loan, but with a decrease that big, it is possible that your new payment does not cover ALL of the interest that should be paid. The unpaid interest is often added back into the loan. Please look at your loan documents (not your statement). This can get really messy if you don’t pay at least all of the interest due. Look carefully at your statements too – it may say “minimum due” and then it may say “total interest” – MAKE SURE YOU PAY THAT TOTAL INTEREST, or your loan will increase each month…not decrease.

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