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Repayment vs Interest only - calculations

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Comments

  • dobymicks
    dobymicks Posts: 97 Forumite
    getmore4less wrote: »
    equity.
    1. £42k
    2. £18k
    3. £44k
    4. £330k

    Only one of those will cover that debt.

    Our plan is sell all BTL's in 9 years which is when the IO loan ends.

    Our choice for new IO loan is: 1.99% for 2 years or at 2.49% for 5 years. both with no fees.
    Any thoughts?
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Investigate the lenders retention deal history and the follow on rates.
  • dobymicks
    dobymicks Posts: 97 Forumite
    Many thanks
  • amnblog
    amnblog Posts: 12,782 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    dobymicks wrote: »
    We would sell a btl property to clear the mortgage

    I was telling a mate in the pub tonight how I was finding it difficult to get an interest free mortgage and he suggested borrowing extra on a repayment mortgage and using the extra to pay the larger monthly instalments.

    He reckons it would not work out much different in the end.


    How many had he had at the time?
    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.
  • dobymicks
    dobymicks Posts: 97 Forumite
    A few, but he is not far off the mark
    Put £40k of the extra 50k borrowed into 2 x santander 123 accounts @ 3%

    The mortgage balance after the 50K runs out is less than the required IO 75K loan
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