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Interest Only Mortgage 95% LTV?
NoNoDrama
Posts: 237 Forumite
Reselling the property at the end of the term to pay back as the 'plan'.
Dreamworld, or possible to get this deal?
Dreamworld, or possible to get this deal?
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Comments
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I can't imagine a lender taking this on but the various Brokers on this forum may have an idea.
The question is why? What are you trying to achieve?0 -
I can't imagine a lender taking this on but the various Brokers on this forum may have an idea.
The question is why? What are you trying to achieve?
It would work out cheaper than renting. I would have a secure property for 25 years.
My research suggests unlikely as lenders don't like this deal anymore.....but as there ever been a 25 year period where the price of the property has decreased?? I would have a guess on this never happening in this country.0 -
This isn't happening in the current market place I'm afraid.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 -
Why? The price of the property has doubled is the last 25 years.
Is it the LTV or the lack of plan which is the problem? I'm guessing both?
Shame they aren't willing to take the gamble...dreamworld it is then
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Why? Because they are risk averse. If they can lend what they want to lend to less risky clients why bother offering it to the risky ones.
In your situation its the LTV that's the problem, the repayment vehicle is acceptable to a number of lenders, given a few other requirements.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 -
Why? The price of the property has doubled is the last 25 years.
Is it the LTV or the lack of plan which is the problem? I'm guessing both?
Shame they aren't willing to take the gamble...dreamworld it is then
The risk for the lender is that you default in the first few years, when HPI hasn't adequately covered the risk of having to sell at a loss. With a repayment mortgage or a lower LTV the chance of repossessing and the sale not covering the mortgage is too high.I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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