Really Silly Question re: Interest Only vs Repayment

Hurdler

Hello
I have a REALLY stupid question!
I am wanting to take out equity in my flat to buy a house and have been quoted tracker rates for both, at interest only & for repayments.
Now as I understand it... the trackers I am looking at have no redemption penalties and one can throw money at it whenever etc.

So what am I missing? What's to stop me from getting two interest only tracker mortgages?

I would assume both obligations will require some additional life cover to meet the debt should I shuffle off this mortal coil?
I am confused..!

Many thanks

Hurdler

Think I am going to be borrowing 4 times my salary to go towards the new place as it is, and trying to maximise the equity I can take out of the flat to boost that.

As I remember from the scary days of my mis-behaving endowment, interest only means you need a chunk of dosh at the end of the term to pay off (and if that's so - that would explain the rep's suggestion that if I was going to plough letting profit back into the flat why not get a repayment anyway.

I guess the question I mean to ask is: Interest only = some other means required to pay off the balance at the end of the term?
So I would be tied into some investment or other?
Repayment = everything done and dusted at the end of the term?

Sigh... I must have just purged all this out of my mind once I cancelled my endowment and jumped into repayment a few years back!

Hurdler

Ah ok... that perhaps explains the rep's pushing for a repayment.
The advice I was given by chartered surveryor chums was interest only and reconcile yourself that you won't "own" the flat but rather that it is your investment for the future... and now that makes sense if you are not tied into a savings/investment plan.

That really helps with the calculations now.

Cheers.