Interest Only Mortgages

opinions4u

ViolaLass wrote: »

Sorry sir.

No need to apologise.

It was a great call.

Senior_Paper_Monitor

An offset may well suit the OP ... BUT an offset still requires the same formal repayment vehicle as any other mortgage structure. Adhoc payments to the offset account (i.e overpayments) are not a repayment vehicle.

There are a limited number of lenders who will go over the 50% LTV limit for residential mortgages on interest only, but their qualifying criteria are certainly heading towards Mr Gloster's definition !!

We have put just 3 through this year (excluding BTLs) and each one - while totally justified cases in my opinion - heve been pulled for file checks by compliance. Only two of these interest only mortgages have been on primary residence - and I would be surprised if we did many (possibly 'any') more on primary residences in the remainder of the year.

I am not necessarily against interest only as a strategic part of an overall financial plan but they are not simply 'cheaper mortgages' and it is their use as this in the past (and the actions of the claims companies who believe that borrowers are never responsible for their decisions) that has led to the current knee jerk reaction legislation effectively killing the option in the majority of cases.