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

gemmaking

grey_gym_sock wrote: »

what you can't do is now start on (or switch to) interest-only, unless you meet the lender's criteria. switching from interest-only to repayment (if you're already on interest-only) shouldn't be a problem.

So, starting off as a First time buyer, with an Interest only, is fine
(and switching in 3-5 years to repayment)

that is fine these days? with lenders ?

grey_gym_sock

no ... you can't start on IO unless you meet the criteria ... and you can't switch to IO unless you meet the criteria.

_Andy_

Oh !!!!!!

You AREN'T going to get an IO mortgage.

In any case from the sounds of it you can't afford repayment anyway which means you're not going to afford IO+repayment vehicle and frankly you can't afford a mortgage full stop.

Please stop going on and on about IO and move on.

sterlingstash

To get an interest only mortgage now, you must already have enough money not to need the mortgage in the first place - check out LLoyds IO criteria. Million pound pension pot (at current value) or 125% of the value of the IO mortgage already in a stocks and shares ISA.

droiderm

Back to the original question, why do you want the cheapest monthly repayment possible?
Can you not afford a repayment mortgage? If not why you so keen to get a mortgage?

gemmaking

droiderm wrote: »

Back to the original question, why do you want the cheapest monthly repayment possible?
Can you not afford a repayment mortgage? If not why you so keen to get a mortgage?

Paying cheaper mortgage payments are better than paying expensiver ones.
- common sense lol.

Yea i think i can afford a repayment mortgage, as i want to get on the property ladder.

grey_gym_sock

'expensiver' is not a word.

Dave_Ham

Maybe it would be prudent to add that you need to be 18 to get any mortgage, cheaper or not

harvey115

Dave_Ham wrote: »

Maybe it would be prudent to add that you need to be 18 to get any mortgage, cheaper or not

So, no Doll house mortgages

zzzLazyDaisy

gemmaking wrote: »

Paying cheaper mortgage payments are better than paying expensiver ones.
- common sense lol.

And that is precisely the sort of attitude that led to IO mortgages no longer being freely available.

Put simply -

If you borrow £100,000 to buy a house and only pay the interest, you will always owe £100,000.

At the end of 25 years, you will have to pay the £100,000 back to the lender. In the past many people just paid the interest, made no provision for saving up to pay the capital back, and later simply could not afford the higher costs of changing to repayment (think about it, if you keep your repayments on IO for ten years, you only have 15 years to repay the capital so the payments are a LOT higher).

If you get to the end of the 25 years and have no way of repaying the loan, you lose your home.

'Expensiver' repayments are necessary if you are going to repay the loan on time and keep your home.

It is common sense!