Interest Only Chat

Just talked to dad and G about the interest-only vs repayment debate on the mortgage front.

Both seemed to think that interest-only was a decent option. Dad especially seemed to think that as the interest rate is only 4.29%, I could put the difference in a bank account and make 5.00%, then pay the extra and have some interest saved up.

G seems to swear by interest-only saying that in 30 years time, £160,000 will seem like nothing and I'd be able to pay it off with a month's wages. of course, I'd be paying interest on the same amount until that point, so it would be a lot more than just £160,000 I'd be shelling out.

I'd tempted to the interest only, but we'll see what projections I'm sent in the post by the mortgage people.