first time buyer mortgage in london - interest only.

h_london_boy

Hi All 
This is my first post here. Me and my family are now thinking of getting our first home. Since we live in London, housing is extremely expensive. So I thought about getting an interest only mortgage. 
Our situation is
Both people in full time and secure employment (NHS) (both of us together on 70K basic salary)
I also have a second job that gives me a smaller salary (20K)
I also have additional fixed income coming in monthly (about 5K a year)
I also have additional income that's variable (but about 12K a year last year and going up this year because its related to anti-virals)
So total gross income is about 107K from past, but is going up all the time.
We have 2 children. No loans, no CC debt, no car on PCP. clean credit all our adult lives.
Deposit about 170K
What IO Loan could we get and which broker would be suitable? 

csgohan4

I/O are incredibly difficult to get and as with everything getting a mortgage is based on affordability. 

Any particular reason why not a repayment mortgage?

Socajam

I also second a repayment mortgage
As someone who had a endowment mortgage, I had to revert to a repayment later on due to having a shortfall.
Luckily, I was paying attention and was able to change to a repayment 12 years before termination.

dimbo61

I think you will be banging your head against a wall trying to get an Interest only mortgage as lenders now want to see a repayment vehicle ( in case of MIS selling complaints )
So get yourself a good mortgage broker and ask them what you need to do to get your family home you want and need

haras_n0sirrah

In terms of interest only you can still get them but you need to either have a minimum income or a minimum amount of equity. Some lenders do partial interest only and partial repayment. If you can do full repayment it will open up a lot of lenders but interest only can be right for some people but it takes a lot of discipline to ensure you have the means to repay it when the time comes. With regards to brokers there are brokers who post here. We cannot approach forumites but are happy to help if we are approached. Read the forums and maybe pm a broker who you feel gives good advice 

h_london_boy

Thanks for the replies everyone. 
I am running an active Ltd company in addition to our day jobs. Its an medical-technical company, but I could in theory use it as the vehicle to buy a property on IO and rent it out to my family? Or is that not allowed?