Interest Only mortgage with no early redemption charges

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Jude123
Jude123 Posts: 350 Forumite
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in Mortgages & endowments
We are looking to buy a plot of land and build a house on it. As we have a lot of equity in our current house and are not planning to sell our house until the new house is ready to move in we are thinking of remortgaging our current house to pay for at least the cost of the land. To keep monthly costs down, looking at an interest only remortgage. However, all that we have found from high street lenders have early redemption charges if we pay back the mortgage (ie when we sell our current house) with the first 2 years. Does anybody know any lenders that don't have these early redemption fees?

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  • amnblog
    amnblog Posts: 12,456 Forumite
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    Yes, there are lenders with no ERP products that offer interest only mortgages. You need to consult a good broker.
    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.
  • Jude123
    Jude123 Posts: 350 Forumite
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    I have just spoken with L & C. As it is for a relatively short time they say that I need to go down the bridging loan route, which will no doubt cost a fortune. Perhaps I shouldn't have told them that we would be paying off the loan in 18 months.....
  • amnblog
    amnblog Posts: 12,456 Forumite
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    No, you should have probably not have said that.


    I did say consult a good broker.
    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.
  • Jude123
    Jude123 Posts: 350 Forumite
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    amnblog wrote: »
    No, you should have probably not have said that.


    I did say consult a good broker.

    Any recommendations!!??
  • amnblog
    amnblog Posts: 12,456 Forumite
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    We brokers are not permitted to recommend on here.
    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.
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