Borrowing/ mortgage type advice

evansmummy

Hi,
We're looking at moving area and will have to increase our mortgage to get into the area we want.
First thing is I'm a 'housewife' so I have no income (although I should be paid tons for my job haha!) and we only have my husbands income.
The issue we have is that at the moment to get the amount we want we wouldn't be able to stretch to the prepayment option but as I'm going back to work in 2 years, when the children are at school, we will be able to do it then.
It's not an option to wait til then cause of the children's schools so we were wondering if it's worth going down the interest only route for the 2 year short term and changing back to repayment once I go back to work.
Is it that simple or am I being an idiot?
Advice would be welcomed, be nice!!

CloudCuckooLand

Ask your lender for their stance on IO.

Some will, some won't. Some will want "alternative repayment vehicle", so you might as well be repayment.

Not something to be relied upon, in my opinion. Life gets in the way of plans about going back to work, then you find yourself years behind the repayment curve, struggling as you approach retirement.

evansmummy

Thanks. I will be getting in touch with a mortgage advisor as our current fixed rate is up for renewal in April so have a bit of flexibility with changing lenders.
With regards to life getting in the way of going back to work, you obviously haven't met my children haha. I can't wait to go back!!

Burridge60

evansmummy wrote: »

.....you obviously haven't met my children haha. I can't wait to go back!!

Watch those child care costs. If you are stretching to be in the right area the right kind of child care wont come cheap and will put your repayment plan back too!

I think the saying is if you cant afford it now and have no guarantees you wont be able to afford it in the future.

Interest only below 75% is OK with some lenders as long as you state you will sell your home to repay it but you wont find me recommending it!