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Restarting an interest only mortgage
paulo1888
Posts: 151 Forumite
Hi there, I would be grateful for any advice. I have sold my house, and with the proceeds I am paying back my interest only mortgage which has 3 years to run and is £44,000. I am going to rent for a few months and then buy a new property. Only problem being that by terminating my mortgage with the Alliance & Leicester I may find it difficult to kick start it again with another building society because the lenders are not too keen to offer interest only mortgages now. I have an endowment policy running against my mortgage which is due to mature in June 2015 which will cover the £44,000. I am just wondering if anyone can see a better way for me to proceed other than try and find a building society to restart my £44,000 interest only mortgage. Many Thanks
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Comments
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You're applying for a new mortgage and you have a perfectly acceptable repayment plan in place to repay the interest-only mortgage. You'll be fine.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Rent for 3 years you won'r need a mortgage.
A repayment on long terms trend towards I/O so not much more per month.
Age may limit term.
eg: £44k 5%
£831 5y
£467 10y
£348 15y
£291 20y
£258 25y
£237 30y
£184 I/o
Can always borrow a bit more, LTV and income permitting and use that to fund the larger payments.
Offset might be an option .0
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