Interest only

housebuyer143

I have residential interest only, but it's not easy to aquire.

I have downsizing as my repayment strategy and no min income, BUT I needed 50% ltv and a min amount in the property of £200k and need to be able to afford a suitable property in that price range to downsize too. There were only 3 lenders I found that would even consider me for it also.

Realistically if you need interest only, you can't get it. 

LeroyBoyce

housebuyer143 said:

Realistically if you need interest only, you can't get it. 

And there we have it... They certainly aren't making it easy for us, are they?

LeroyBoyce

K_S said:

An alternative to bring down the monthly payment might be to stretch the term. If you're in a desk based occupation and not close to retirement yet, there are mainstream lenders who will go to 80 on the term, that might help reduce the monthly payment. 

Now, that is a depressing thought, but I guess if it's a 2-year deal, one can get a better term when it expires.

I just need a 2 year deal to ride out this storm and *hopefully* things will be better...

CSI_Yorkshire

LeroyBoyce said:

housebuyer143 said:

Realistically if you need interest only, you can't get it. 

And there we have it... They certainly aren't making it easy for us, are they?

That's not their job.

And remember what happened the last time they made it (too) easy for everyone.

LeroyBoyce

No, but surely their job isn't to turf us all out onto the street either, is it?

LeroyBoyce

CSI_Yorkshire said:

That's not their job.

And remember what happened the last time they made it (too) easy for everyone.

They are happily making £5billion from our mortgages and higher rates without putting up saving rates...

TheAble

LeroyBoyce said:

My plan is to rent after selling up.

The rental market is quite insecure and expensive right now. Would this just be temporary before buying another place?

LeroyBoyce

It's likely, but I am also wanting to keep my options open regarding where I live. I may wish to move abroad, if possible.

user1977

LeroyBoyce said:

No, but surely their job isn't to turf us all out onto the street either, is it?

Why would that happen, if you've only got 50% LTV?

simon_or

I have an interest only mortgage as well, primarily a tool for retirement planning. There are plenty of banks that offer interest only mortgages without sky high income though each will come with their own stipulations and requirements.

It looks like you own a reasonably expensive property and are at very low LTV, both of which are big positives for interest only where your plan is to sell and downsize to pay off the capital.

If you're over 55 (or 60 I'm not sure) then you could even look at things like retirement interest only.

Get a solid broker on it, there's nothing to gain by trying to DIY it.