Shall I invest in my kids mortgage?

D1zzy

The kids have the option to switch their tracker mortgage to fixed rate with no charge - they could set things in motion now but do not have to make the switch for 9 months - (3 months before their tracker expires).

With 60% LTV they can get 3yrs at 4.38% or 5 yrs at 4.89% - so I'm thinking I could lend them the amount they need to bring their LTV down to 60% and they can repay me at the same rate as their mortgage (which is more than I can get in a savings account) - everyone's a winner - at least in the short term. Should I be kind....?

Fairwinds

They could get 3.99% for 5 years with A&L - no fees either - so the deal offered certainly isn't the best around. Would they have penalties to pay to move?

D1zzy

GordonD wrote: »

They could get 3.99% for 5 years with A&L - no fees either - so the deal offered certainly isn't the best around. Would they have penalties to pay to move?

Probably - to be honest haven't looked for best rates yet. The appeal for this one was they could apply now at current rates but not commit for 9 months - so it just set them (nd me) thinking..