Can we borrow more on interest only?

nooksky

Hi I wonder if anyone can point me in the right direction.

My partner and I are currently paying off £106K mortgage on a £175K house. The mortgage is down to about £94K at the moment. Also we regularly overpay by a minimum of £100 per month. We got the mortgage when we were both in full time employment.

Just over a year ago my partner went self employed and is doing really well. However I understand that we need 3 years accounts to be able to get a new higher mortgage.

We are hoping to move before we have 3 years accounts so I am trying to think of ways to get a larger mortgage, as we know we can afford it but just cannot prove it.

I wondered if we would be able to borrow more if we opted for an interest only mortgage, as we are very disciplined with our money and I would feel very safe in the knowledge that we would make the extra payments each month to reduce the capital.

Hope someone can help!! Thanks in advance.

ladytwiglet

yes you can, you can go for a self-certified mortgage where you dont have to prove your income. of course, this means you will pay a slightly higher rate of interest, but as long as you have the mortgage reviewed regularly the chances are the next time its reviewed in a couple of years, you'll have your accounts and be able to remortgage on a lower rate. a small price to pay for not having any accounts methinks! your best bet is to discuss this with a mortgage broker who can find you the best deal for your circumstances.

Mr_helpful

You only need one years accounts for quite a few lenders, or you could self cert, either way it shouldnt be much of a problem.