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Interest only mortgage.
kgldsun
Posts: 113 Forumite
We are looking to move which will incur a shortfall of about 30k. (total house cost about 230k) At the moment we have a repayment mortage (25k outstanding) and with this taken into consideration we do not really want to pay much more to lend the extra 30k. We have therfore been advised an 'interest only' mortgage would be good to keep further monthly mortgage costs down, or to extend a mortgage way past our retirement age which again would keep monthly costs down.
We are 53 and hope to retire at 60. one of us will have a reasonable pension but not one that we would want to be supplementing mortgage costs.
Any advice on pros/cons or other ideas would be welcomed please.
Many Thanks.
We are 53 and hope to retire at 60. one of us will have a reasonable pension but not one that we would want to be supplementing mortgage costs.
Any advice on pros/cons or other ideas would be welcomed please.
Many Thanks.
0
Comments
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How will you repay the debt?
At first sight it looks like you are planning to live beyond your means.0 -
If you don't want to use any of your pension to pay for a mortgage then you'll have to go the capital + interest route. A 7 year mortgage for £55,000 won't exactly be cheap (about £750 monthly) but your overall cost will be much lower of you can pay it back as quick as possible.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
opinions4u wrote: »How will you repay the debt?
At first sight it looks like you are planning to live beyond your means.
Plans would be to downsize at first opportunity when we retire. hence we would plan to pay back from the sale of house?
Hoping that all went well.0
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