AIP withdrawn, what now 90% ltv need interest only

riverboat2001

Hi All,
We had an agreement in principle set up by one of the mortgage brokers recommended on here. We are in a somewhat unique situation and were pleased with the mortgage offered. But it was only valid for 60 days, and ran out yesterday, so i phoned the broker to extend it. He phoned back later to say that Santander had stopped offering that product and he would have to find out if ANYBODY else had the right product for us.

Feel really deflated and upset as we have just put an offer in on a place assuming there would be no problem.

What we are looking for:

Need a mortgage for a property at 235K and we have a 25K deposit.
(but may have to go higher if we dont get this property, realistically could be 250k)


So really need a 90% (could possibly manage 85%) LTV mortgage
Interest only and fixed at best possible rate for two years, and due to hubby being 52 can only be 13 years long.

Cannot afford the repayments on a standard repayment mortgage, so it has to be an interest only one.

To outline our situation, we have a property worth about 350k with 48k outstanding on the mortgage. BUT i can't sell it for about two years (long story) because interest on the repayment mortgage is so low i'm not too worried about it.


But if interest rates do rise i need to ensure that the second mortgage is on a fixed rate.

Does anybody know who is doing 90% or 85% LTV on interest only mortgages?

opinions4u

1) Why do you need an interest only mortgage?

2) Why would you do business with a broker you picked up on an internet forum?

3) Could you raise a bigger deposit on your existing property?

Bullfighter

Cannot afford the repayments on a standard repayment mortgage, so it has to be an interest only one.

There's your problem.

_Andy_

I don't think you'll find any lender doing 90% LTV. Abbey stopped doing IO that high ages ago.

dunstonh

The FSA has stated that interest only cannot be used as a way to fudge affordability. Lenders have slowly been acting on that to different extents.

When you consider that interest rates are at an all time low, if you cant afford capital & repayment now then what are you going to do when the base rate goes back up to something more normal?

firstaspect

I think you'll struggle. Is there a reason you can't stay in your current place with the low repayments and make any overpayments you can over the next 2 years until you can sell.

koexelek

_Andy_ wrote: »

I don't think you'll find any lender doing 90% LTV. Abbey stopped doing IO that high ages ago.

75% ltv max on interest only for them now

GMS

Have you looked in to doing part and part?

75% on Interest Only, with 15% on Repayment?

getmore4less

First direct offsets seem to be run as interest only but need sensible LTV

Does your income support lending at the £260k level, at 4* thats over £65k?

If not it is going to be difficult

You could look at raising more money on the man house and reduce lending on the new one, get an offset on the new place that you 100% offset when house 1 sells.

riverboat2001

Bullfighter wrote: »

Cannot afford the repayments on a standard repayment mortgage, so it has to be an interest only one.

There's your problem.

I have a flat worth about 350k with 48k outstanding. My Mum lives in it. She will be retiring at some point in the next two years, and then my flat will go up for sale, this will be used to pay off my new mortgage.

So this is why an interest only mortgage will do us just fine.

Mum has also said that if we sturggle she will move out straight away (she has somewhere to go)

opinions4u

riverboat2001 wrote: »

I have a flat worth about 350k with 48k outstanding. My Mum lives in it. She will be retiring at some point in the next two years, and then my flat will go up for sale, this will be used to pay off my new mortgage.

So this is why an interest only mortgage will do us just fine.

If you can get one.

In other words, you don't need an interest only mortgage, you want one.