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.
As you enter the details of the debt tick the Interest Only check box.
Next, go to to the Time screen and add an event in the third year of the plan to mark the point at which the debt payments will be adjusted.
Having done that, go to the Expenses > Basics screen, where you will find a debt payment expense that the software created automatically for the mortgage.
Select this expense in the ledger to the right. Expand Advanced Settings > Step Up / Step Down.
In the drop-down list at the top of this panel, select the the event you added a moment ago.
Enter the full adjusted amount the future payment. By paying more than the interest alone, the mortgage payments effectively become a combination of principal and interest.
Lastly, expand Inflation (which is also under Advanced Settings) and select Future Value. This will ensure that the stepped future payment amount is not inflated.