Going temporarily interest only

dread_3

Hi.

I need to remortgage to raise some cash for an extension. It is important to keep the monthly payments as low as possible for at least the next year so I was wondering about taking a short interest only deal like the variable offset from First Direct currently at 3.49%.

There is no tie in so when the wife starts working (we've just had a baby hence the need for an extension) I could then look around for a repayment mortgage. The only disavantage I can see is the obvious one of making my mortgae more expensive long term but in the short term I have to save as much as possible.

What do people think? Any thoughts would be most welcome.

feisty1

is yr deal up? or are you just rmtg to raise cash?

Kez100

I understand you might like an extension but you do not need one. A baby is not that big or demanding. Only do it if you can easily afford it.

dread_3

The current deal is not up and as it is a tracker it is currently at a good rate. However they will sting me for the extra £35000 I need at 5.99%. Also as the building society have opted out of the variable rate ceiling I an entitled to opt out of the deal without any penalties. As it is a small mortgage it should be cheaper to remortgage the whole amount.

As for whether we need an extension or not...ask the wife.;)

Kez100

What is your LTV

feisty1

dread: i am actually in agreeance with kez100, this is not a time to be taking on extra financial commitments when yr income is reduced. How safe is yr job, do u have income protection? Who is yr lender

dread_3

LTV with the extra £35000 will be around 50%.

Feisty1 - I do understand and share your concerns but my job is pretty safe and I really have to do this so is the idea of going interest only for a year or two a good one in the circumstances?

feisty1

dread: i am an adviser and that is what i would be saying to my clients first............

Joe_Bloggs

I would imagine that living in a house that was a building site would be a cause of stress. Can you get rid of things you don't need that take up space. Could you change the use of rooms. Have you considered getting a large shed.
J_B.

feisty1

Joe_Bloggs wrote: »

Have you considered getting a large shed.
J_B.

!!! Might be a place of sanctuary many men would find attractive!