choices

property.advert

_Andy_ wrote: »

Very few lenders will offer pure interest only (HSBC is not one of them)
.

Utter cobblers. They don't need to see your repayment vehicle and they certainly don't just offer repayment mortgages. The practical effect of that is interest only.

property.advert

pitchshifter1 wrote: »

Should have mentioned that the purchase price of the new property was £205k but the actual value was £170k
Will still be putting down the whole £95k profit

Will be calling HSBC tomorrow

Will you come round and buy my asset valued at £170k for £205k ?

Just what do you mean here ?

_Andy_

property.advert wrote: »

Utter cobblers. They don't need to see your repayment vehicle and they certainly don't just offer repayment mortgages. The practical effect of that is interest only.

Please list, given the OPs LTV, which lenders will offer pure IO (as in where the applicant is declaring there is no RV)

pitchshifter1

Will you come round and buy my asset valued at £170k for £205k ?

Just what do you mean here ?

Hi, in Scotland the system is offers over/offers around or more recently Fixed Price

Following a Home Report a value is set and the offers are on the basis of this. In this case the house was valued at 170k (hence what they base the LTV on) but the interest was such that the house went to closing date and there was in essence a 'bidding' war (in secret, as happens in all UK markets). So, there were 19 noted interests, 9 offers on the table. Ordinarily 'offers around' should mean just that , but in this case it didnt

Now in real terms, with profit from our current home etc we only want a 110k mortgage but am I right in thinking when looking at mortgage calculators they will see our LTV as higher because WE paid more (as opposed to the actual asking price just being paid)?

So, we want 110k cause we have profit of 90k to put down, but as far as banks are concerned we are only depositing 60k as we take the hit for overpaying

So, when looking at mortgage calculators this dictates what we can get

pitchshifter1

any more thoughts guys , been some good advice in here so far

Co-Op 5 year fix at 3.99% is looking a good safe bet

Woolwich Lifetime tracker Base+2.29%

First Direct Term Tracker Fee Free Base+2.39%

HSBC 2 year fixed 2.49%

Would also be looking to overpay by £100 or so each month