Interest only mortagage with no endowment - want to move house

originalmiscellany

I think IO mortgages can be extremely good when used in the right way, like most things in life!
A sharp knife can be dangerous in the wrong hands but to say a chef it's essential.
Our IO was taken out knowing it gave us the freedom to overpay as much as we wanted, and if times get tough we can go to just paying the interest only and not overpay. We chose that as it gives us the flex we desire. I would agree though that for many people (not the OP!) who took them out they were relying on paying the IO and selling the house for a huge profit, which clearly isn't the case at the moment, as discussed on many other threads.

jennieshrew

originalmiscellany wrote: »

I think IO mortgages can be extremely good when used in the right way, like most things in life!
A sharp knife can be dangerous in the wrong hands but to say a chef it's essential.
Our IO was taken out knowing it gave us the freedom to overpay as much as we wanted, and if times get tough we can go to just paying the interest only and not overpay. We chose that as it gives us the flex we desire. I would agree though that for many people (not the OP!) who took them out they were relying on paying the IO and selling the house for a huge profit, which clearly isn't the case at the moment, as discussed on many other threads.

I think it has worked out well for us. We had the option to make overpayments as well. We chose to pay off debts first rather than make over payments. Our house is worth a similar amount to what we paid for it and it was cheaper and better than renting. We had a 10% deposit to put into the house and only planned to pay the mortgage interest only for a few years. If and when we move house we will swap to repayment now.

My income has increased steadily over the years as my qualifications and my experience have increased. We have slowly learnt to manage our finances better over the last few years and to budget better as our income has been more than enough to pay a mortgage properly, we just havent had the will power and dedication requied to run things properly. I think we are nearly there now thanks to MSE.

magpiecottage

jennieshrew wrote: »

I am an accountant - its just not even funny is it!

About par for the course from what I have seen.

I have been dealing with a case where a Chartered Accountant complained about an IFA to FOS because the IFA did not explain a particular aspect of taxation to him.

If that wasn't bad enough, it turns out that no tax was due anyway!

Burridge60

jennieshrew wrote: »

.......... we just haven't had the will power and dedication required to run things properly. I think we are nearly there now thanks to MSE.

:T
I have seen fewer than a handful of cases in 17 years where the clients had the will power and dedication to handle a pure interest only mortgage. They wont be able to any more if they move.

Maybe the lack of choice about mortgage repayment will be a good thing and not so bad when we look back on it.

Just be careful about the mortgage term and don't get carried away by how cheap mortgages appear now due to ultra low interest rates.

Good luck with your move!