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Finding interest-only mortgage rates
laurafcam
Posts: 1 Newbie
Hi, I'm trying to secure a small interest-only mortgage for 5 years for home improvements (LTV c.7%). I can't seem to find any comparison sites to compare interest rates. I've checked HSBC who require £100k income which seems crazy considering the low LTV. Any idea where I can look? The MSE rate comparison only allows for capital repayment mortgages.
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Comments
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Why interest only ?
whats the plan in 5 years and how much is “small mortgage”0 -
@laurafcam There may be options but only a broker could say for sure. As you have discovered, most of the mainstream lenders with IO options require high incomes (think it's 75k for Nationwide).
Given that it will be secured against your current residence, any option may require you to prove how the capital will be repaid at the end of the term. Good luck!
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There are no interest only rates. They are the same as capital and repayment rates. It is just the lending criteria that needs to be satisfied.I've checked HSBC who require £100k income which seems crazy considering the low LTV.
HSBC are known to be a cherry picker when it comes to mortgages.
The low LTV helps an application over the line but in itself it does not mean you satisfy lending criteria. Your equity does not provide you with an income.
What repayment vehicle do you intend to use to repay the mortgage?
I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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