Interest only mortgage

tyllwyd

My OH's salary might be reducing soon, so we need to decrease our mortgage. One of the options we are looking at is changing to an interest only mortgage. I looked at the Nationwide, and they seem to be willing to do interest only as long as you have £150K equity. We don't have that much - we need a mortgage of £140K on a property worth about £240-260K. And we are looking at basing it on a salary of about £30K (plus my self-employed income but we'd rather not bring that into the equation).

Without going into the pros and cons of it all, does that sound completely hopeless, or are there lenders who might look at this?

koexelek

Other lenders will look at that..
Try Abbey, Halifax and C & G

tec_2

I've been going with Interest Only Mortgages for the past 6 years - the main thing whenver I've applied for one is the lender asking if I have funds to cover the mortgage - such as ISA's, endowments etc. So on those basis, I have managed in the past to secure an Interest Only Mortgage of £170K on a property worth £280K. So if you put your self-employment income, savings etc into the pot, it is possible. I too would advice you look at a variety of lenders.