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Mortgage advice needed , mad idea or not ?
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sunrise27_2
Posts: 1,349 Forumite
We have always wanted to be able to help our children out while we are here to see them benefit from it not just when we're dead and they inherit a large sum
We have a house worth £300000 with 4.5 years left to pay on the mortgage , we currently owe £33000
We're thinking of remortgaging at a lower rate and alongside the repayment mortgage for £33000 taking out an interest only mortgage for 15 years for £30000 using this we could give our children a lump sum towards a deposit for a house and get a few home improvements done to our our own house , in five years when the main mortgage is paid off we would then just be left with the £30000 interest only part for 10 years but obviously we wouldn't have the main part to pay , we are 50 at the moment so at 65 we would look to downsize pay the £30000 off and then the children would inherit half of the smaller house each when we die , would really value any opinions ? Any advantages or disadvantages to what may be a stupid idea ?
We have a house worth £300000 with 4.5 years left to pay on the mortgage , we currently owe £33000
We're thinking of remortgaging at a lower rate and alongside the repayment mortgage for £33000 taking out an interest only mortgage for 15 years for £30000 using this we could give our children a lump sum towards a deposit for a house and get a few home improvements done to our our own house , in five years when the main mortgage is paid off we would then just be left with the £30000 interest only part for 10 years but obviously we wouldn't have the main part to pay , we are 50 at the moment so at 65 we would look to downsize pay the £30000 off and then the children would inherit half of the smaller house each when we die , would really value any opinions ? Any advantages or disadvantages to what may be a stupid idea ?
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I think the main issue is that most lenders won't deem it to be an allowable purpose to borrow to give away and telling them any different is mortgage fraud.0
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I think the main problem is you won't get an interest only mortgage!0
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We have a financial advisor looking into it for us just waiting to hear from him , looks like the abbey are the only ones who might do it , anyone got any other ideas we don't want it to cost us a fortune but are keen to help the children of we can ?0
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Are those figures accurate, or might there be a missing "0" here and there?I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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Oops the joy of getting old and eye sight getting worse
House is worth £300000
Amount owed £33000
Amount wanting to borrow interest only £30000
Think that's all correct ?0 -
It now makes more sense.
I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Lol still wondering if it's going to be a possibility x0
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lucie_1985 wrote: »I think the main issue is that most lenders won't deem it to be an allowable purpose to borrow to give away and telling them any different is mortgage fraud.
Not an issueI 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 -
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 -
TrickyDicky101 wrote: »I think the main problem is you won't get an interest only mortgage!
Not necessarily trueI 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
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