Temporary 2-3 year Interest Only Mortgage?

Sjb07

Hi, I don't have much knowledge on mortgages, my wife did all the work first time round, but this sound like something that would be ideal for our situation.

I'm not sure I understand them completely.

Does anyone know if it would be possible to remortgage our house on an interest only basis for 2-3 years and then remortgage again to a repayment mortgage after the 2-3 years?

we paid £100,000 for the house 6.5 years ago and currently owe £72,000.

I have been looking into it a bit but the more I read the more confused i'm getting :think:

ACG

Very very unlikely.
Interest only has pretty much been pulled during the last 12-24 months apart from in certain circumstances - but the affordability assessment is still carried out based on a repayment mortgage - typically you need at least 50% equity.

You might have more luck remortgaging but over a longer period? That will reduce the repayment although not by as much as interest only.

Sjb07

Thanks for the info(disappointing as it was)

If I remortgaged over 25 years to reduce payments, would their be anything stopping me remortgaging again in a few years to bring the years back down to 12 years if that suited better?, coz I don't like the idea of starting another 25 year mortgage even at reduced payments.

stephenni1971

You wouldnt need to remortgage from 25 years down to 12 - you couls just increase your repayments to suit and clear it early.

kinger101

stephenni1971 wrote: »

You wouldnt need to remortgage from 25 years down to 12 - you couls just increase your repayments to suit and clear it early.

True, but it usually worth remortgaging if;

(a) a discount period has come to an end;
(b) you get below a LTV threshold and can get a lower interest rate.

ACG

Providing you pass credit and affordability checks, there is nothing stopping you reducing the term back down.