Interests Only Mortgage if you are planning to sell?

war

hi,
is it convenient an Interest Only mortgage if you already know since the beginning that you are going to sell the house after few years?

thanks

Thrugelmir

Might as well rent rather than incur the costs of buying and selling, and also those of ownership.

alexanderalexander

war wrote: »

hi,
is it convenient an Interest Only mortgage if you already know since the beginning that you are going to sell the house after few years?

thanks

Possibly, but this is a choice which only you can make. The advantages and disadvantages of interest only versus repayment mortgages are pretty self-evident -- so I am not sure how much people can really add.

Thrugelmir wrote: »

Might as well rent rather than incur the costs of buying and selling, and also those of ownership.

Not necessarily -- the OP may be bullish on house prices in his/her area, and/or the cost of interest repayments may be far less than the rent would be.

_Andy_

war wrote: »

hi,
is it convenient an Interest Only mortgage if you already know since the beginning that you are going to sell the house after few years?

thanks

Convenient perhaps - not going to happen though as unless you have a massive amount of equity no lender's going to do that for you.

Thrugelmir

alexanderalexander wrote: »

Not necessarily -- the OP may be bullish on house prices in his/her area, and/or the cost of interest repayments may be far less than the rent would be.

Interest and rent are not comparable. Ownership comes with all the costs of maintenance and upkeep.

Whether they are bullish or not doesn't really matter. As better to repay the debt (capital) and save interest. Majority of lenders require evidence of a repayment vehicle so little to be gained.