Any suggestions ?

RainMaker_2

Hi

I need an interest only mortgage of £425,000 for a residential purchase of £500,000 (85% LTV) over a term of 13 years. Earning £110k with bonuses of £40k, not guaranteed but regular as clockwork (last 3 x P60's can verify this). Same employer for 20 years. Perfect credit history EXCEPT one default to a utility company for £185 recorded January 2014.

Repayment vehicle not a problem with current background assets of cash (£100k), Equity in 2 x BTL properties (£200k) and tax free Pension lump sum (at least £200k).

Been turned down by West Brom and don't want to start racking up credit searches with other lenders in a hit and miss fashion.

Anyone with any ideas ?

JimmyTheWig

Why not use some of your cash to increase your deposit?
Why does it need to be interest only?

RainMaker_2

JimmyTheWig wrote: »

Why not use some of your cash to increase your deposit?
Why does it need to be interest only?

I could, but would prefer not to. I can get a much better return on it elsewhere.

I retire in 13 years time and couldn't afford the payments on a repayment mortgage, so needs to be interest only.

JimmyTheWig

RainMaker wrote: »

couldn't afford the payments on a repayment mortgage

I think this may be your problem.
Though others may have suggestions.

ACG

I did an 80% LTV Interest only last month. I suspect you will have more options as your income is over the magic £75k that was causing me problems on the case I had.

Have you spoken to a broker? The may want to delve in to why you were turned down by West Brom but in theory it should be achievable.

kingstreet

Lenders offering IO establish affordability using a repayment mortgage.

You don't have enough equity for interest-only where a lender might require £150k clear over the mortgage on the residence. BTLs which are encumbered by their own mortgages aren't going to go down well and lenders won't accept a basket of different things, they will want one single definite repayment vehicle which fits their criteria.

I suggest you read the interest-only criteria of a few lenders and establish exactly what you are up against, then consult an independent broker who will try to make the best of the situation for you.

A default within the last three years won't help as well...

Thrugelmir

RainMaker wrote: »

I retire in 13 years time and couldn't afford the payments on a repayment mortgage, so needs to be interest only.

If your pension pot is as large as you say it is. Then running the mortgage into retirement may be an option.

RainMaker_2

kingstreet wrote: »

....and lenders won't accept a basket of different things, they will want one single definite repayment vehicle which fits their criteria

Kingstreet

You may be interested to know that last week I completed on a £425k interest only mortgage at just under 85% LTV. The repayment vehicle accepted was a mixture of invested cash, equity in 2 x BTL's and the tax free element of estimated Pension at retirement.

The lender was Kent Reliance.

kingstreet

Congratulations.