short term mortgage

Shunter64

hi, is there such a thing as a short term mortgage (not a bridging loan)? i want to borrow 60k over 25 years. i want it over 25 years and interest only because i want to keep the monthly payments low i also want a mortgage with no redemption penalties. The reason i want a mortgage with these criteria is that i want to use the 60k to add an extension to my property. when it is built my mum will sell her house and move in. She will then give me the capital to pay off the 60k. my property is currently worth 300k with a 60k split mortgage (30/30 interest/repay) with halifax. does anyone know if there is a lender out there who would entertain such a proposition? and if so would i have to remortgage the whole amount (ie my current mortgage plus the additional borrowing) or would a lender let me have a second mortgage? halifax don't seem keen to help.

thanks

alison :-/

Mortgage_Master

Hi Alison,

Subject to income etc... most lenders should be able to help you with this.

Ask your existing lender what they can offer you (further advance), then you've got something on which to make a comparison with other lenders.

Then look at some of the fees free remortgages with no tie in periods. There are several around.

With regards to your question re second charge, it's unlikely to be in your interest to go down that route as the rate will be higher and may carry penalty if you pay it off early.

Good luck
Simon

Shunter64

hi Simon

thanks for your advice. i really wanted to know if my idea was feesible beofre i started the ball rolling. i'll contact an ifa and see what they can do for me.

thanks again


alison