interest only mortgage...what are the chances?

freeisgood

Can I give you this scenario.

Couple income poor but capital rich...
want to buy a house to live in and start a property business.

It is possible to buy a house putting 80/90% down and get the rest on an interest only mortgage...to be able to put more money into the business (moderately experienced developer). Pay of the mortgage in as soon as 5 yrs, of course the longer the better though, ideally 12 years

(also small pension pot coming in the future)

comb income approx 40k

House would cost 800k, would put down 650/700k get the rest on an interest only mortgage.
would leave capital of 600k for business use.
meagre 60k pot to ripen in 11 yrs time.



Is the answer a big fat no?

TrickyDicky101

So you have c.£1.3m cash currently?

You don't have the income to support a residential interest only mortgage so likely to be very difficult.

Because you want to live in the house, you won't get a BTL.

Not looking promising.

Maybe if you reallocate investment funds to house buying fund - that way you won't need a mortgage?

freeisgood

Yes, it so annoying...we know loads of people who have bought their house in this way but that is before they got so strict.

We just want the option of putting more money in the business while securing a home that is a better one for us.

Thanks for your reply

If anyone knows of a lender that may do this, please let me know