interest only on a high ltv

epz_2

ive seen a property that if i get it will thinking in my opinion be of such value that i really dont care about a market correction etc so im thinking of offering.

basicly ive got 65-70k deposit talking about offering 135-140k

now im a contactor with a basic income at the moment of ballpark 18K so borrowing close to 4x salary.

the good bit is this place is massive and i could easily rent a room out but needs work.

i was thinking about going interest only for the first couple of years meaning not only will have a pot of cash should i need a new contract but also can fix the place up gradually.

basicly im wondering first if its a daft idea and if i go for a 5 year fix can it be setup as interest only and would the repayment amounts fit in an isa or would their interest get taxed

JoeK_3

Sounds good to me.

Don't forget:

1% stamp duty
Cost of doing it up (get some quote's)

Get yourself a good whole of market mortgage broker as not all lenders will accept a contractor.

JoeK

herbiesjp

Sounds fine as a plan.

The fact you have a large deposit to put down will open up the whole market to you. Being a contractor can cause some problems but you should be able to find plenty lenders to agree this.

Not sure why you say high LTV as you have a 50% deposit

Going interest only is fine, as it sounds like you are aware of the need to change to repayment to eventually clear the mortgage