interest only mortgage

b21playa

Looking to borrow £70k over 10years at interest only. Buying the house, and waitiing for them to pick up and will sell in the peak.

Now what are the best mortgages, should i go for fixed, variable, offset, tracker?

Would like something will no ERC after 2/3 years

Met_Bobby

Why borrow to invest in property? Is that a good idea?

feisty1

b21playa wrote: »

Now what are the best mortgages, should i go for fixed, variable, offset, tracker?

This is like asking .........What is the "best" car?

One size doesn't fit all, it depends on yr personal circumstances...........

getmore4less

What is your deposit

http://forums.moneysavingexpert.com/showthread.html?t=1450725

Robert_Sterling_3

You have not given us enough facts to go on.

b21playa

Sorry for the late reply

My parents have purchased a new house and I am buying their old one off them, and looking to sell in a few years time.

£30k deposit, £70k mortgage required. This will be my first mortage and my only property. As I only want to keep it short term, I feel interest only is a better option

I was looking at First direct, 1.89% above base. I think this was a offset tracker. Has no early repayment fees, etc, so if i sell in 2 years time its only a £140 exit fee

getmore4less

If you need somewhere to live and the interest is lower than renting then that is a sensible choice.

Planning to sell in a couple of years to make money is high risk. If you want the next peak think in terms of decades.

b21playa

getmore4less wrote: »

If you need somewhere to live and the interest is lower than renting then that is a sensible choice.

Planning to sell in a couple of years to make money is high risk. If you want the next peak think in terms of decades.

not really fussed to move in a couple of years, if the price doesnt get where i want it, i'll keep it

b21playa

what are peoples thoughts about the FD offset base rate tracker/

seems the cheapest to me so far although it has a £800 arrangement fee

Thing is as I get extra cash, I can put it in the savings to offset mortage payments, but also have the facility to use the money and just up the monthly payment

b21playa

what is the rough amount of time for First Direct to approve a mortgage

Robert_Sterling_3

b21playa wrote: »

My parents have purchased a new house and I am buying their old one off them, and looking to sell in a few years time.

There are some costs associated with buying the house and then selling the house. I would not assume that there would be any profit to be made out of this two year ownership.