Q - I am trying to key a particular debt into Voyant regarding a holiday home. The debt is Interest Only payments for 2 years. After those 2 years the debt reverts to a capital and interest mortgage. How would I enter this change in terms?
A - Start by entering this mortgage on the Debts screen from the Dashboard.
As you enter the details of the debt tick the Interest Only check box.
Next, go to to the Timeline and add an event in the third year of the plan to mark the point at which the debt payments will be adjusted.
Select the mortgage from the Dashboard, select> Steps>Add step.
In the Payment Amount box enter the full adjusted amount the future payments. By paying more than the interest alone, the mortgage payments effectively become a combination of principal and interest.
Timing - select the event created on the timeline for when this overpayment occurs
Escalation Rate - will apply an inflated amount at the end of the year to the adjusted figure
Year View - view Year View Expenses to see the adjusted amount reflected.