Part Repayment / Part Interest Only - is it possible

wheldcj

We have been in our current house for 10 years and it has appreciated in value quite nicely but as we all know house price increases only incrementally make that next step up the ladder wider.   Therefore moving to the next rung, porting our mortgage and increasing lending is just not practical as the repayment is just too much to consider.   However is it possible to port over your current mortgage on repayment and borrow the rest on interest only?

My theory is that it would be almost certain we would downsize to a property similar to our current one, if not smaller in 5-10 years time so not being able to fully pay off the new mortgage is not a huge issue.    I accept that lack of full repayment coupled with a housing crash could leave us vulnerable but we have quite a fair amount of equity for this to become reality.

housebuyer143

Interest only tends to only be available to people who don't need it. As in a high net worth, a lot of equity and a credible repayment strategy. (Rich get richer comes to mind).

Downsizing used to be acceptable and it still is in a small minority of places, but you need to have a lot of equity, at least 200,000 and a minimum loan to value, some 50%, and many places require you to have a minimum income of at least 60,000 or above.

If you meet the criteria interest only then there is the option to do part and part. If the repayments are too much on a normal mortgage, the chances of you getting interest only are quite slim to be honest, especially because they lenders will assess affordability as if it was a repayment mortgage so it won't help you to increase your borrowing.