Interest Only Mortgages

londonsaint81

Trying to get an interest only mortgage but most lenders now say they want 50% deposit.

Does anyone know of any lenders that require a lower amount of deposit than 50%?

Thanks!

Simon_gloster

londonsaint81 wrote: »

Trying to get an interest only mortgage but most lenders now say they want 50% deposit.

Does anyone know of any lenders that require a lower amount of deposit than 50%?

Thanks!

Yes, but 75% LTV is the max and you would need to prove at least :

1) £1m pension
2) min £50,000 in stocks or shares
3) an endowment where the middle figure is equal to or more than what you want to borrow.

Repayment it is then!!!?

londonsaint81

Simon_gloster wrote: »

Yes, but 75% LTV is the max and you would need to prove at least :

1) £1m pension
2) min £50,000 in stocks or shares
3) an endowment where the middle figure is equal to or more than what you want to borrow.

Repayment it is then!!!?

I have 30% equity to put down but not the other criteria...

Looking to re-mortgage from current deal and its proving difficult!

I think my monthly payments are going to increase by £300-400

opinions4u

How are you intending to repay the mortgage?

londonsaint81

Savings and investments, ISAs, etc.

I wanted interest only as it would have enabled me to save more each month and then pay off the capital in lump sums when I wanted...

Simon_gloster

londonsaint81 wrote: »

Savings and investments, ISAs, etc.

I wanted interest only as it would have enabled me to save more each month and then pay off the capital in lump sums when I wanted...

The criteria I mentioned is only a snapshot but it gives you a general idea....no-one wants to do Interest Only anymore.

If your Savings, ISA's etc combined add to more than £50K you will be in a good position to be eligable for IO.

Perelandra

HSBC and First Direct's websites suggest that 30% IO mortgages are possible from them.

ViolaLass

londonsaint81 wrote: »

Savings and investments, ISAs, etc.

I wanted interest only as it would have enabled me to save more each month and then pay off the capital in lump sums when I wanted...

Offset?

...

opinions4u

londonsaint81 wrote: »

Savings and investments, ISAs, etc.

I wanted interest only as it would have enabled me to save more each month and then pay off the capital in lump sums when I wanted...

Viola stole my thunder. An offset mortgage sounds like a potential solution.

Do you really expect savings accounts such as cash ISAs to earn more than the interest you pay on a mortgage?

ViolaLass

opinions4u wrote: »

Viola stole my thunder. An offset mortgage sounds like a potential solution.

Do you really expect savings accounts such as cash ISAs to earn more than the interest you pay on a mortgage?

Sorry sir.

grey_gym_sock

made to play second fiddle by a viola!