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Interest only vs Repayment mortgage
TartanRug
Posts: 9 Forumite
Hi,
Looking at taking out a mortgage for 23 to 25 years, I realise that in the first few years of this if I take out a repayment mortgage then I will be paying mostly interest during the first few years and paying off little of the actual loan itself.
Would I be better off going with an interest only mortgage for a few years and putting the savings I make into an ISA, then after this period (say 5 years), then reverting back to a repayment mortgage for around 18-20 years?
Also, is it still easy to get an interest only mortgage these days?
Thanks in advance for any help!!
TartanRug
Looking at taking out a mortgage for 23 to 25 years, I realise that in the first few years of this if I take out a repayment mortgage then I will be paying mostly interest during the first few years and paying off little of the actual loan itself.
Would I be better off going with an interest only mortgage for a few years and putting the savings I make into an ISA, then after this period (say 5 years), then reverting back to a repayment mortgage for around 18-20 years?
Also, is it still easy to get an interest only mortgage these days?
Thanks in advance for any help!!
TartanRug
0
Comments
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You would only be better off if you can find an ISA which pays a higher rate than the mortgage rate.You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'0
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Generally for "most" people interest only mortgages do not exist anymore so the question is irrelevant.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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