Newbie needing mortgage advice!!

chrisatapple

Hi All

New to the forums, so, firstly, hi!

I'm looking for some advice and no idea what to do. I currently own my house with brother. We own it outright so currently have no mortgage. The property is valued at roughly 120k. I want to buy my brother out so I'm looking to borrow around 70k.

I want to keep payments as low as possible for the next 12-18 months. I 'm not sure what the best sort of mortgage is for this basis. I wanted an interest only, but have been told I wouldn't be able to get one due to not having anything set up to pay the rest off at the end of the mortgage term.

Any advice would be greatly appreciated as I'm looking to do this quite quickly.

Many thanks

Chris

:beer:

_Andy_

If your priority is purely lowest payments, you just need to look for the lowest rate. However be aware this will mean higher fees.

jockosjungle

Wait 12-18 months?

R

chrisatapple

Thanks for your replies!

Well a mixture of the lowest fees and lowest monthly payment. I can't wait 18 months - needs to be sooner.

Cheers

_Andy_

I'd suggest speaking to a whole of market broker.

happyandy63

I don't know how this works but if you get on well with your brother could you pay him in installments.Basically you agree that you will pay him a fixed amount for the house. Then either pay him each month or a fixed amout each year. Does he need the money now? There is little point you paying interest and him having money in bank with no interest?

chrisatapple

Is this a legal arrangement happyandy... or is this a brotherly respect thing?

happyandy63

Depends how well you get on with your brother. My brother gave our sister half the money for her house. I gave my brother £20k and my sister £10k when they needed. We all have paid each other back. We never needed paper work. If my brother did not pay me back then I am not going to take him to court, he is my brother. Then again I am his so he will pay. For me the bonds are more important than money. That said you can easily and cheaply get a solicitor to draw up a simple contract. Make sure you cover all the eventualities like if house prices go up or down

dimbo61

Far to little information to go on ! Why low payments for the next 12/18 months.
If you want to buy your brother out of his half you need to borrow the money at the cheapest rate over the shortest time in order to pay the least interest!
Now having a great family like "happyandy63" is great but not everyone is good at finances and some people are always overdrawn with the bank, have huge credit card bills and nothing to show for it.
So think long term and consider a 5/10 year fixed rate deal and try to clear the mortgage over that period so NO remortgage costs

Rallyspit_2

Your proposed loan to value would be 58% as you already own equity in the house. Most lenders would allow you to have interest only without a repayment vehicle in place. Although this would rarely be best advice, it could allow you to keep to a minimal payment for 12-18 months before converting to a repayment mortgage. Stop listening to the milkman and have a chat with a good whole of market mortgage broker who will be able to tell you very quickly whether your proposed buy out is feasible.

Hope this helps.