Interest only mortgage

zoesma

Good morning
We have been advised by husband's accountant to maybe take out an interest free mortgage.
We own 2 houses already,which we rent out.,mortgages paid off.
My husband is self employed,I do not work,I'm 63,
We would like to carry on the renting of both properties
We have about £70,000 sitting in savings accounts with very little
interest.
So the idea would be to use the savings as a deposit ,and his earnings,plus rents from properties to buy a small flat for us to live in ?This would be only for about 3/5years.
What do you all think??

k3lvc

zoesma wrote: »

Good morning
We have been advised by husband's accountant to maybe take out an interest free mortgage.
We own 2 houses already,which we rent out.,mortgages paid off.
My husband is self employed,I do not work,I'm 63,
We would like to carry on the renting of both properties
We have about £70,000 sitting in savings accounts with very little
interest.
So the idea would be to use the savings as a deposit ,and his earnings,plus rents from properties to buy a small flat for us to live in ?This would be only for about 3/5years.
What do you all think??

Really ?? I've just remortgaged and must've missed a trick somewhere :rotfl:

AnotherJoe

I think you've not given enough information for anyone here to double guess your accountant.
Presumably you are currently renting, and this is an alternative to renting for another 3-5 years before something else happens. But thats just a presumption, maybe you are living with your parents who after 40 years are fed up and kicking you out

zoesma

Thank s for that!!
No we've been touring in our caravan,which I enjoy but my husband's becoming a bit fed up,he wants a base.Also in 3years I should receive my state pension.hes younger than me.
Hope this helps
Thanks

AnotherJoe

It doesn't really help. You said "this will only be for 3/5 years". OK you get your SP then. So? Why is that significant? What would you do differently? SP isn't normally so generous that it makes a radical lifestyle change to people.

You haven't stated the rationale behind an IO mortgage.
Is that because thats all you could afford? Or because you'd move in 3-5 years? Or you'd sell the other houses? Or its tax advantageous? Or you'd move elsewhere?

tacpot12

What is the plan to pay off the mortgage?

getmore4less

What do you all think??

I think you need a better plan that covers a longer period and goals.

to buy a small flat for us to live in ?This would be only for about 3/5years.

Without knowing what will happen in 3/5 years difficult to understand what the goals might be.

Kentish_Dave

Given the transaction costs would you not be better off renting?

zoesma

Many thanks to all
After giving the figures and great deal of thought we've decided to not go ahead.!
Many thanks