Interest Only mortgages

withabix

Looking to move later this year and need some opinions and advice.

To date, I'm on my third house in 12 years. First two were with my ex-wife, hence I 'returned to Go' just under 4 years ago - back to 5% deposit, 95% mortgage after settlement and debts.

I have benfitted from the rising market and have a house worth £130K with £48K mortgage outstanding.

I'm 37 hence I have a potential 28 years until normal retirement age, or 23 until I want to retire.

I'm down to get a decent inheritance in the future (yes, morbid consideration, before you say it!!), which would pay off the mortgage.

Firstly, should I go for an interest only mortgage on this basis - I want to borrow max £150K to give me a maximum purchase price of about £230K ?? My income would get me a mortgage of between £143K and £176K or £175K to £210K with my partner's included.

Secondly, will mainstream lenders give me an interest only mortgage without me setting up an investment to pay it off? I'm currently with C&G and would probably stay with them.

Rikki

I have part of my mortgage as interest only. All my over payments go to reducing this and I have life insurance in place if any thing happens to me.

Wickedkitten

I certainly wouldn't.

hazeyj

Wickedkitten wrote:

I certainly wouldn't.

Hiya , is there any particular reason why you wouldnt go for an interest free mortgage? What about if it was only for a fixed term period whilst you got yourself on your feet? Thanks

withabix

I'd love an Interest FREE mortgage, but I'm sure you meant to put Interest ONLY!!

hazeyj

iainkirk wrote:

I'd love an Interest FREE mortgage, but I'm sure you meant to put Interest ONLY!!

......................................Oh yeah!