5 Ways to reduce your mortgage payments ?, for a NEW property/new mortgage

gemmaking

Stuggling to get on the property ladder.

Can you add to the list, and give advantages and disadvantages for each one.

1) Do an interest only repayment (for some years, until the repayment can be afforded)

2) Offer a lower deposit £, %

3) Consider shared ownership

4) ??

5) ??

6) ??

7) ??

_Andy_

1) isn't going to happen without a repayment vehicle

kingstreet

2) a lower deposit means a bigger mortgage, a higher rate and higher payments

Mrs_Z

Stay at your parents/flat share/etc so that you can SAVE SAVE SAVE, and if possible see if there are any ways of upping your income; second job, ebay sales, ??? (plenty of ideas on the Mortgagefree Wannabee board)

grey_gym_sock

get into a higher paid line of work.

move to a part of the country where property is cheaper (but where you can still find (higher paid) work).

get a richer partner.

realize it's not a ladder, it's just somewhere to live.

be very patient.

move to a third world country, where your meagre savings (by UK standards) may be enough to live in luxury for many years.

gemmaking

_Andy_ wrote: »

1) isn't going to happen without a repayment vehicle

what is that?

please elaborate

harvey115

gemmaking wrote: »

what is that?

please elaborate

A Car that spits out money for your mortgage

kingstreet

You are unlikely to be able to get an interest-only mortgage without arranging a means of paying it back. The days of doing interest-only for a few years, then changing to repayment are gone.

gemmaking

kingstreet wrote: »

You are unlikely to be able to get an interest-only mortgage without arranging a means of paying it back. The days of doing interest-only for a few years, then changing to repayment are gone.

so how are things different now ?

what is 'required' to do interest only ?

and How much £££ is a repayment vehical. (depending on the property i know, but say it is £120,000(

kingstreet

Lenders don't wish to be tagged "irresponsible" by the regulator, so they've tightened up considerably.

Interest-only is now offered mainly upto a loan to value of 75%, sometimes less. You are required to take out a plan to repay the mortgage at the end of the term, such as an ISA. How much you will pay into such a plan is dependent on your target figure and the term involved.

Some lenders are contacting their interest-only borrowers asking them for evidence of the plans they are using to repay existing mortgages, so it isn't only new mortgages which are affected.

Here's a recent Guardian story;-

http://www.guardian.co.uk/money/2012/oct/04/nationwide-abolishes-interest-only-mortgage-deals

gemmaking

kingstreet wrote: »

Lenders don't wish to be tagged "irresponsible" by the regulator, so they've tightened up considerably.

Interest-only is now offered mainly upto a loan to value of 75%, sometimes less. You are required to take out a plan to repay the mortgage at the end of the term, such as an ISA. How much you will pay into such a plan is dependent on your target figure and the term involved.

Some lenders are contacting their interest-only borrowers asking them for evidence of the plans they are using to repay existing mortgages, so it isn't only new mortgages which are affected.

Here's a recent Guardian story;-

http://www.guardian.co.uk/money/2012/oct/04/nationwide-abolishes-interest-only-mortgage-deals

Can you give an example of a 'plan'.

and what format is it supposed to be written?
(a piece of paper and pen? lol)