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Interest Only Term About to Expire

Mortgage Sphere Feature Article

Interest-only investment term about to expire?

If you’re currently paying interest-only on your home loan, at some point in the future it will expire and you’ll be required to pay off both principal and interest. This article explains everything you need to know:

Interest Only Term About to Expire

If you’re currently paying interest-only on your home loan, at some point in the future it will expire and you’ll be required to pay off both principal and interest.

Interest-only loans typically only run for a period of 4–5 years depending on your lender, so it’s worth planning in advance what you’ll do when it expires.

Here are some of your options.

Get an extension

It might be possible to get an extension on your interest-only period and continue to pay just interest for another fixed term.

This is something that you will need to speak to your lender about and each one will vary in how they might handle this request.

They will likely want to see you move to principal and interest at some point, but this will come down to your personal circumstances and your lender.

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Start repaying principal and interest

Depending on your goals and financial situation, moving across to principal and interest might be an option for you.

If you’ve owned your property for some period of time, you might now be in a position where you’re earning higher wages or seen your rental income increase.

However, there are some things you will need to consider beforehand, including how much time is left on your loan. If you had a five-year interest-only period with the total length of the loan being 30 years, then you’ll have 25 years to pay down the principal which would mean higher repayments than a 30-year loan term.

Another important consideration is that with a principal and interest loan, you may be able to get a lower interest rate. Lenders might perceive a principal and interest loan as being lower risk and therefore offer a lower interest rate.

Refinance

If you want to keep on paying interest-only, or even if you want to switch, it’s worth talking to a mortgage broker and comparing your options.

Just because you want to revert to a principal and interest loan doesn’t necessarily mean you’re going to be getting the most competitive interest rate or the right loan features to suit your needs.

If your intention is to continue paying interest-only, it’s worth having a mortgage broker assess the market and see what the right solution might be for your situation.

The other important considerations if you choose to refinance are if there are any costs involved, as well as thinking about the new loan term you want to take on and the costs that might be associated with that.

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Interest Only Term About to Expire

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Find out more about finance with these articles
Interest Only Term About to Expire

Home Loans

We give you the facts needed to make the right decisions. We take charge of the application process and work hard to find the home loan right for your circumstances.

Interest Only Term About to Expire

Refinancing

If you need to unlock equity in your home or you’re wondering if you could be getting a better deal, we can help you decide if refinancing is the right option for you.

Interest Only Term About to Expire

Vehicle Finance

Time to update your car? We can help. We work with many specialist car lenders with a range of flexible loan options for your next car, bike, boat, van or equipment.

Interest Only Term About to Expire

Personal Loans

Instead of paying off several debts at varying interest rates, we can consolidate your debts into one easy one at a lower rate to ease your monthly burden and stress.

Interest Only Term About to Expire

Investment Loans

Whether you are looking at capital growth or rental income, we can show you how property investment could be a great way to increase your wealth over a long period.

Interest Only Term About to Expire

First Home Buyers

Buying your first home is a big step. But with us by your side, you’ll feel completely at ease. We’ll guide you through the maze and answer all your important questions.

Interest Only Term About to Expire

Commercial Loans

Securing the right loan increases your businesses chance of success. Our finance specialists review your business plan and assist to define your ideal loan.

Interest Only Term About to Expire

Small Business Loans

With so many small business loans available and so many ways to structure them. Our sensible advice will make your life easier and add genuine value to your business.

Interest Only Term About to Expire

How Mortgage Sphere helps with your next financial move

Find out more about finance with these articles
Interest Only Term About to Expire

Home Loans

We give you the facts needed to make the right decisions. We take charge of the application process and work hard to find the home loan right for your circumstances.

Interest Only Term About to Expire

Refinancing

If you need to unlock equity in your home or you’re wondering if you could be getting a better deal, we can help you decide if refinancing is the right option for you.

Interest Only Term About to Expire

Investment Loans

Whether you are looking at capital growth or rental income, we can show you how property investment could be a great way to increase your wealth over a long period.

Interest Only Term About to Expire

First Home Buyers

Buying your first home is a big step. But with us by your side, you’ll feel completely at ease. We’ll guide you through the maze and answer all your important questions.

Interest Only Term About to Expire

Vehicle Finance

Time to update your car? We can help. We work with many specialist car lenders with a range of flexible loan options for your next car, bike, boat, van or equipment.

Interest Only Term About to Expire

Commercial Loans

Securing the right loan increases your businesses chance of success. Our finance specialists review your business plan and assist to define your ideal loan.

Interest Only Term About to Expire

Small Business Loans

With so many small business loans available and so many ways to structure them. Our sensible advice will make your life easier and add genuine value to your business.

Interest Only Term About to Expire

Personal Loans

Instead of paying off several debts at varying interest rates, we can consolidate your debts into one easy one at a lower rate to ease your monthly burden and stress.

Get in your new house faster with Mortgage Sphere.

Instead of paying off several debts at varying interest rates, we can consolidate your debts into one easy one at a lower rate to ease your monthly burden and stress.

all the lender options.

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Interest Only Term About to Expire

“Divit is always on hands, whatever time of day to answer any concern or questions. Friendly, honest and extremely knowledgeable. Highly Recommended. Very Transparent.”

Harshil Shah

Interest Only Term About to Expire

“The experience has been amazing. Divit is very patient in listening to your needs and helps you find the perfect solution for you. The decisions regarding home loans can go tricky as it involves a lot of money but Divit made it very easy.

If you want to be looked after, Divit is the person to work with. In simples words, he is a legend!”

Chimnay Sonavane

Interest Only Term About to Expire

“Best an most reliable service.

Highly recommended – 5 stars

Contact Divit for the perfect and right advice”

Keyuri Desai

Interest Only Term About to Expire

“The experience has been great with Mortgage Sphere. Divit is very knowledgeable and helped us find the perfect solutions for our home loan. He made it a very smooth ride for refinancing.

If you want to be looked after, he is the best guy to work with. He is resiliant and does not hesitate to work extra hours for your peace of mind, Great Guy!”

Chandrashekhar

Interest Only Term About to Expire

“Divit is always on hands, whatever time of day to answer any concern or questions. Friendly, honest and extremely knowledgeable. Highly Recommended. Very Transparent.”

Harshil Shah

Interest Only Term About to Expire

“The experience has been amazing. Divit is very patient in listening to your needs and helps you find the perfect solution for you. The decisions regarding home loans can go tricky as it involves a lot of money but Divit made it very easy.

If you want to be looked after, Divit is the person to work with. In simples words, he is a legend!”

Chimnay Sonavane

Interest Only Term About to Expire

“Best an most reliable service.

Highly recommended – 5 stars

Contact Divit for the perfect and right advice”

Keyuri Desai

Interest Only Term About to Expire

“The experience has been great with Mortgage Sphere. Divit is very knowledgeable and helped us find the perfect solutions for our home loan. He made it a very smooth ride for refinancing.

If you want to be looked after, he is the best guy to work with. He is resiliant and does not hesitate to work extra hours for your peace of mind, Great Guy!”

Chandrashekhar

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Interest Only Term About to Expire

Frequently asked questions

Your opinions are important to us. Whether it is a simple question or a valuable suggestion, we are here 24/7. You can call us by phone or email us directly.

Interest Only Term About to Expire

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