Interest Only Mortgage with less than a 25% Deposit?

Big_Zee

Hi,

I am looking into getting an interest only mortgage and I was wondering what the lowest LVR (Loan to Value Ratio - IE deposit) I can get when it is interest only?

I've spoken to Natwest and they will offer an interest only rate on a 25%, but anything below 25% and it has to be a repayment mortgage.

Is the 25% figure just standard or are there other providers where you can get interest only on a lower deposit rate than 25% ??

Thanks

Thrugelmir

Most lenders will consider that you are over extending yourself above this level of deposit.

A fall of 15% in house prices would leave little equity in the property should you default.

AngelaUK

Halifax do interest only with a 15% deposit.

_Andy_

Big_Zee wrote: »

Hi,

I am looking into getting an interest only mortgage and I was wondering what the lowest LVR (Loan to Value Ratio - IE deposit) I can get when it is interest only?

I've spoken to Natwest and they will offer an interest only rate on a 25%, but anything below 25% and it has to be a repayment mortgage.

Is the 25% figure just standard or are there other providers where you can get interest only on a lower deposit rate than 25% ??

Thanks

What is your intended repayment vehicle?

Big_Zee

_Andy_ wrote: »

What is your intended repayment vehicle?

I am a MD in a profitable fast growing medium sized company of which I own 40%, so in the long term I am not worried about servicing the debt. However at the moment most of my equity is in the company.

herbiesjp

Big_Zee wrote: »

so in the long term I am not worried about servicing the debt. However at the moment most of my equity is in the company.

The lender will be though.

They will be worried with how you will service the debt, and repay the debt.