Where to Find Interest Only Remortgage

SaintsFC1977

Dear Forum

My wife and I have an interest only mortgage on our home which is about 55% of the current value. This mortgage is variable at 2% above base. We thought it might be wise to take a long term fixed rate for 10 years, to future proof our finances until our kids leave home. But, we are struggling to find an interest mortgage, which just strikes me as crazy. We have A1 credit scores and have never missed a mortgage payment.

We are happy with interest only as we have a BTL property from which the equity was to be our repayment vehicle, in about 15 years or so (at about age 60ish). This BTL property has current equity which is already about 80% of our current residential mortgage and we slightly over pay on both mortgages, reducing the total debt by about £2,000 a year. Plus I have couple of personal pension pots with about £20,000 in which I'll take if I need to nearer the time. So we feel we are a safe bet.

We have been offered a repayment mortgage, which we are told we can afford, but laughably our incomes are not enough to have an interest only mortgage. We both work as NHS managers, so £50K or £75K salaries are just a dream! LOL.

How can it be sensible that financially stable and savy people such as us, are locked out of the mortgage market?

Please help.

BTW I was a broker until 2009.

amnblog

This is possible subject to total equity in the property. You need to use a competent broker.

Thrugelmir

SaintsFC1977 wrote: »

we have a BTL property from which the equity was to be our repayment vehicle, in about 15 years or so (at about age 60ish). This BTL property has current equity which is already about 80% of our current residential mortgage

Does this take into account any tax liability that will crystallise on disposal ?

SaintsFC1977

Good question. My best estimate is that if we sold today, we would have a liability of about 7% of the value which means the current equity in the BTL property covers about 75% of our current residential mortgage.

getmore4less

Base+2% is good,

whats the BTL rate?
whats your tax rate?
What releif are you claiming on the rent?

What 10y retention deal does your current lender have will they let you stay IO?

shortchanged_2

Why is a £50k salary for NHS managers a dream?

Most NHS managers I know are on this sort of wage.

David_White

Residential interest only mortgages are few and far between now, but with the help of a broker you should be pointed in the right direction.