Opinions on Interest Only for the First Few Years......

steve_r123

Ok, here goes, we rent at the moment for a fairly reasonable £525 for a 2 bed duplex flat in the town centre which is just about right for the area. However, that is about the maximum we can afford at this point in time due to paying off previous debts etc, so the is virtually no disposable income left at the end of the month.

We want to buy a 2 bed house with a bit more space than we have now, just not in the town centre, but the cheapest mortgage we can really get for the house is going to be around £800 a month and we just cannot afford that just now.

So, is it possible to get an interest only mortgage, and not pay into a saving scheme for the first say 3 years, then switch to a normal mortgage thereafter and overpay to make up for lost time once our other dabts are paid off?

I hope this has all made sense, and you get what I am asking. Dont get me wrong, I dont like the idea of not paying off the capital for a while, but we just cannot afford it just now.

Thanks for any opinions

hungary97_2

hsbc do such a mortgage interest free for first three years then switiching to repayment for 22 years. I am on such a one.

AndrewSmith

Most lenders will allow you to do this.

It is something that is being asked of lenders more and more these days especially by first time buyers.

You must also be mindful that your existing debts that you have outstanding and their monthly payments will have a negative effect on the amount of mortgage you will be able to obtain.

less_is_more_2

Pay off your debts, then buy later with a repayment mortgage. Use the time to see how intrest rates pan out, you never know that house you want today maybe cheaper in months to come. Property can go down as well as up.