Interest only

MWT

LeroyBoyce said:

I bought this house very cheaply, and am in the process of restoration. I am hoping this will have added sufficient value (about £75k) to the value to make the I/O viable.

When you said 50% LTV was that in anticipation of the completed restoration, or currently as it is now?

Trying to change mortgage in the middle of significant building works can be challenging in itself...

housebuyer143

Get a broker if you really want to pursue interest only as thats really going to be the only way you will find them as it's very niche. 

Sarah1Mitty2

LeroyBoyce said:

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...

It isn`t really a storm, more a return to normality which has caught a lot of people off guard, including some politicians it seems.

Sarah1Mitty2

TheAble said:

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?

Only for landlords who overstretched, the OP could easily find a sensible private landlord with no or little debt at a good price IMO.

simon_or

Sarah1Mitty2 said:

TheAble said:

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?

Only for landlords who overstretched, the OP could easily find a sensible private landlord with no or little debt at a good price IMO.

That's not how it works. A 'sensible private landlord' would charge the market rate, irrespective of whether their property was leveraged or not.

A particular 2 bed flat in Manchester city centre will have a going rate that it will rent for which is based on what tenants will pay for it. The tenant isn't going to pay more because the landlord has a mortgage on it or expect to get it a lot cheaper because the landlord doesn't have a mortgage.

Herzlos

LeroyBoyce said:

Thank you for so much advice.

I bought this house very cheaply, and am in the process of restoration. I am hoping this will have added sufficient value (about £75k) to the value to make the I/O viable.

I figure, if there is any extra income at the end of the month, from overtime, for example, I can overpay the mortgage. I am attracted to it being my choice.

However, if I'm on repayment and I cannot pay for a few months, then I could have the place taken off me, couldn't I?

Why not put the extra income into savings so that you can use some of it to deal with any months you can't otherwise pay?

Some mortgage providers will allow payment holidays up to any overpayment amounts too, which may work out better for you (as you're saving more in interest in the overpayment than you'd get from savings).

Herzlos

Sarah1Mitty2 said:

TheAble said:

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?

Only for landlords who overstretched, the OP could easily find a sensible private landlord with no or little debt at a good price IMO.

They might stumble across a friend of a friend who'll rent to them at below the market rate (I've seen it happen) but it's definitely not "easy".