any decent 'interest only' mortgages available for 90% LTV?

Pobby

_Andy_ wrote: »

How are you intending to repay the capital?

National lottery?

adwardo

right, i will answer all the questions you guys have and hopefully i can get some constructive advice.

1) theartfullodger - No, i am not a troll. I am a real person who lives in London where you can't buy jack for 167k. I have recently had a child and need to upsize to a house.

2) _Andy_ - I intend to pay the capital back by my pension which pays a lump some more than enough to cover this. I also have an ISA which could cover this. Plus in a few years time, i will be earning more and have lower outgoings, so could switch to a repayment mortgage then.

3) iamana1ias - i was rounding the figures for ease. i could either increase the deposit or reduce the cost of the house by the necessary amount. But the figures i quoted are the region in which i am looking to operate.

I am a reasonably highly paid professional, who can get a 500k mortgage from my bank but would like to reduce my monthly outgoings for the next few years, so i can provide my family with the support they require right now. Rather than paying off the capital on the loan at this point in time.

Hope this all makes sense.

If anyone has some constructive advice, i would be very glad of the help.

Thank you very much.

Trollfever

If anyone has some constructive advice, i would be very glad of the help.

Sorry, but I have a fever.


.

LilacPixie

constructive advice??
rent build up a bigger deposit
relocate to a cheaper area

adwardo

thank you all for your sarcastic comments.

very helpful.

adwardo

LilacPixie - thank you. At least you had something positive to say.

I moved out of the flat and started renting the second we found out about the baby coming. However, we have been told we need to move out in 6 months. So, ideally i would like to buy somewhere so we don't keep getting moved from pillar to post.

I have been looking at cheaper areas. Indeed, we moved out in order to rent this house. However, moving much further out simply isn't feasible with my work commitments.

So, it's either keep renting or buy somewhere. I think that buying somewhere on an interest only mortgage is a better option than renting, seeing as prices have started increasing again.

Despite the comments of some of the people on this forum, there are mortgages out there for 90%LTV interest only. They just don't have very good rates. I was enquiring if anyone knew of a good broker or had first hand knowledge of any lenders who had good deals in this area.

But alas, i just got smart comments.

theartfullodger

I have been looking at cheaper areas.

Sigh!! Cheaper than £550k gives realms of housing not possible for most people... lucky you!!!

Cheers & best wishes to all, including those who don;t agree with me!

Lodger

Thrugelmir

adwardo wrote: »

Despite the comments of some of the people on this forum, there are mortgages out there for 90%LTV interest only. They just don't have very good rates. I was enquiring if anyone knew of a good broker or had first hand knowledge of any lenders who had good deals in this area.

The facts are very straightforward put down a larger deposit. The interest rate reflects the risk to the lender. Cash in your ISA perhaps?

There's no certainty that your ISA will outperform the mortgage in terms of return.

Some lenders offer 6% rates on the amounts you are looking for.

Take a look here ; http://www.fsa.gov.uk/tables/