Some advice please

hadfield_2

I am trying to help my friend, a lady of 58 years . She is trying to buy a property for 205000 and has 150000 to put down as a deposit. She is wary of the estate agents advisor who seems to have personal motives to do her a deal.
She is buying as she pays £650 in rent at present and thinks she can reduce her monthly outlay by buying. She earns approx £20k and wants the cheapest mortage she can as only intends staying for about 5 years and interest only appeals to her.
I wondered of any one had any advice or pointers as to who she should approach for a fair deal in this matter.
Thanks

MortgageMamma

You friend is better to see an independent whole of market mortgage broker. one that isnt linked to an estate agent if possible.

If your friend borrowed the money on an interest only basis, how does she intend to pay in back in five years?

hadfield_2

By sale of the property

MortgageMamma

Well. I'm not saying its impossible, but from an underwriting perspective on an interest only mortgage for a 58 year old woman I'd imagine a lot of underwriters would want to know how she'd pay it off, and many lenders don't accept sale of property.

Also, putting down such a high deposit for the benefit of five years accomodation is a big risk, especially if house prices fall, she might just be better buying a house in cash now and not taking a mortgage.

hadfield_2

She probably just has about enough to cover the purchase but wants some rainy day money hence her large deposit and small mortgage. She realises she has age against her but her job is stable and will be available beyond 65 . That said she really is looking for a way to reduce her rental outgoings and pay the least for a mortage as possible. Cake and eat it I know but there is some sense in her wishes and the house deal is imminent.
Any advice prior to approaching a broker gratefully recieved. Thanks so far for the info.