Is it possible to get an interest only mortgage now?

yesway

Andy - are they not going to care about a repayment vehicle?

Crinz

Does your husband actually hold shares in the company or does he have an agreement where he gets 3% of the sale price?

If it is the former then as long as you could get a opy of the share share valuation then I know a lender who can do it.

You are not going to get as good a rate though.

Thrugelmir

Crinz wrote: »

Does your husband actually hold shares in the company or does he have an agreement where he gets 3% of the sale price?

How can a value be placed on shares that will not be realised until 5 years time?

I assume that they'd be a CGT liability on same. As current value is market value.

Crinz

I suppose I was really asking if her husband has been issued these shares in a trade or if he has a piece of paper saying 'i.o.u 3% of the companies value when it is sold'

If he has actually been issued proper shares then there is a chance that the company has a share price that could put a tangible value on the amount of shares he holds. If this is the case then interest only shouldnt be a problem.

In other words: How have you come up with the value of his share?

Thrugelmir

Crinz wrote: »

I suppose I was really asking if her husband has been issued these shares in a trade or if he has a piece of paper saying 'i.o.u 3% of the companies value when it is sold'

If he has actually been issued proper shares then there is a chance that the company has a share price that could put a tangible value on the amount of shares he holds. If this is the case then interest only shouldnt be a problem.

In other words: How have you come up with the value of his share?

Assumption would be this a private company which has equity funding. The shareholders/investors will be looking for a trade sale in 5 years to realise their profits. Value could be based on the last round of equity financing. I. e. the amount investors paid for new shares in the Company.

So is at the least subjective as to current value. As no market to trade them.

yesway

Thanks Crinz - he does.

However, I just applied online with Yorkshire building society - same rate 3.94% but higher fees.
I think it may have gone through with me saying we'll repay through investments / shares.

Thank you Andy for inspiring me to do that!

yesway

He does = has a share certificate currently valued at £300,000

themoomins

We just remortgaged with the Post Office (Bank of Ireland) with an IO mortgage on 75% LTV. Haven't even asked how we're going to repay it, so mybe try there. I was surprised we got it, never mind not having to make a repayment plan. We plan to keep the house for a long time though and buy somewhere else outright later on which is actually how we plan to pay!

yesway

Andy - I have since discovered YBS are no longer doing such a good rate and Leeds BS have rejected us on the basis of our childcare bill (£2000 a month - 4 children).
I would really appreciate it if you could suggest which lenders we should approach.

Also - is i possible to remortgage just part of our debt so we'd keep say half at 2.5%?

northerner999

Rather than going through all these lenders and getting rejected (I think I'm right credit checks may aversely affect your credit rating), go to a whole of market broker. They'll tell you exactly where you stand.