hard to get I/O mortgage is there any other way

gamston

hi all
2 yrs ago I got an interest only mortgage on a flat for my daughter to live in as she was at uni, finished uni but she cannot get a job, so i'm still paying the I/O mortgage,
it was a 2yr deal which has come to an end, and the new deal offered by Santander is £100 pm more than what I was paying on original deal, mrs have been to local banks etc and 2 appear willing to offer simaler deal to Santander
deals coming in at 2yr 4.29%
that does not sound very cheap to me,
any advice or tips please,
the mortgage is for 90K, I put down 30K deposit
I've just retired from work, so I'm living on my pension (56yrs old so took small lump sum)
we have bank/P,bond/shares etc of around 120k + own our own home

ACG

Put it on a BTL mortgage.
There are rates available under 4.29%.

It will need to be a regulated BTL as its a family member in the property.

Best to speak to a broker as most BTLs are available through brokers only. It should be on a BTL anyway.

Senior_Paper_Monitor

If daughter is not paying a contractual rent a second home residential mortgage is an option - depending on overall equity position on both properties and your retirement income - and there may be a few lenders willing to consider it.

A regulated buy to let would permit you 1) to have your daughter there as a tenanted occupier 2) rent out subsequently if/when she moves on (and interest only would be 'the norm').

You should check that your insurance (residential/landlord) is appropriate.

To ensure you understand the nuances of the proposed arrangements (for ownership and insurance), and - as ACG indicates - the availability of BTL options, I thoroughly endorse the suggestion that you take to detail to a broker.

gamston

thanks for the info
a broker got me the first deal, and came up with the deal from Santander, I thought it the monthly payments were high that is why I was looking round,
i'll get back to broker and ask about BTL and second hoe residential mortgage

gamston

update

TSB sorted me out with an I/O mortgage paying roughly the same as I am now for next 2 yrs
no fees, so well pleased