Help with INTEREST ONLY MORTGAGE

oscarsacco

'evening all,

Hope someone can help; we are hoping to borrow £280000 on a property worth £315000 - over 40 years, interest only to keep payments down for 3 years, when Mrs OS goes back to work full time. We need a mortgage provider who does not require proof of repayment vehicle, as we will be making capital overpayments from [not guaranteed but normally very good!] bonuses.

Basic salaries are:

Me: £38000 pa
She: £37000 pa

Any help would be appreciated.

OS

herbiesjp

A lot of lenders should be happy with what you are looking for, and will infact accpet bonus payments as a method of reducing the capital balance.

Nationwide however are one lender that will want to see proof of a repayment vehicle in place at the outset

HTH

oscarsacco

Thanks very much for the reply; from the top of your head, can you think of any lender that would be happy with this arrangement? Although I know you are not supposed to fish for business on the site (and you haven't!) I do need an IFA and am in London.

Pammur_2

I'm with National Counties. Very happy with them. Am on long-term interest only loan which I took out 4 1/2 years ago, discounted for 5 years and allowing 10% repayment annually of the capital and 3% early repayment penalty. I did this through a mortgage advisor at St James's place. I didn't offer any evidence of investments to cover the mortgage, but did say that I had investments in South Africa. These things are usually disregarded though (ie wasn't allowed a credit card in UK for a very long time!). Current interest rate is 5.79%. National Counties phone number for Customer Services is 01372 747771 and the website is https://www.ncbs.co.uk.

Perhaps they can help you. Hope this helps, good luck

toonfish

if the lender insists on a repayment vehicle you can set up an isa and make minimum payments. Go for the best rate, rather than be driven by the repayment vehicle issue.

Canucklehead

Good morning: Try Coventry Building Society.

Good luck.

Canucklehead