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Interest only, offset tracker mortgage
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I though FD offsets were only interest only.
if you still get a reserve(they may have fixed this) you can convert a Barclays repayment to interest only.
need to find someone that has recently got a Barclays offset0 -
I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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 -
getmore4less wrote: »if you still get a reserve(they may have fixed this) you can convert a Barclays repayment to interest only.
Can you explain this? What's the reserve?I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
She'll have lodgers that will cover her interest on the loan we'll make her
Potentialy taxable income twice.0 -
gadgetmind wrote: »Can you explain this? What's the reserve?
The reserve is an account(mortgage cuurent account) with an overdraft that grows as you pay off the capital on the mortgage account.
you can convert the mortgage to an Overdraft which has no payment schedule like a repayment loan.
They may have fixed this loop hole on newer offset mortgages.0 -
getmore4less wrote: »Potentialy taxable income twice.
Agreed, but neither daughter nor wife use their full personal allowance, and my wife will save some by moving savings into offset account.
However, if there is a much better way of tackling this, then I'm all ears!I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
It's a no brainer if you can get the loan, if digs are £70pppw and you can get a place that will hold 3 people for £100k loan
210*52/100000 thats nearly 11% gross yield.
Even term time only you are probably covered and if in the right city a potential gold mine in the summer.0 -
gadgetmind wrote: »She'll have lodgers that will cover her interest on the loan we'll make herThrugelmir wrote: »
If lodgers are required to cover the interest. Sounds as if finances are limited.
She lives rent free the lodgers cover the costs, she is forking out £70pw now thats a back up she won't be spending.0 -
Well, the property is £130k, so yield less *but* this isn't one that would suit a BTL landlord, hence the price.
Nottingham has introduced a new planning rule requiring C4 permission for using as a HMO. Daughter can avoid this by occupying herself and having only two lodgers.
This does restrict resale price, but anything with C4 would be £170k for a heap of s*** that's suffering from damp and subsidence. We should know as we looked at a few!
As it happens, we can *just* manage it without the loan, but it involves taking a hit on some term accounts and hunting down the back of every sofa.I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.
Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.0 -
Mortgage_Mark wrote: »Why specifically interest only instead of repayment though? The offset part is a different animal, you can get many offset products that are on repayment mortgages?
I've never seen a massive appeal to an offset interest only mortgage, if the idea is to offset interest and reduce the loan...then why interest only?
The primary benefit of offsets over other option is cash flow flexibility interest only maximizes that.
Offset are rarely the cheapest way to reduce interest once you decide cash flow is not a consideration.0
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