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Repayment or Interest Free
Hi - Our property is currently on the market. We have seen a property we would like to buy. We are currently mortgage free so are willing to mortgage the new property and pay the mortgage off, when ours sells. Should I go for Repayment of Interest Free ?
Comments
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I assume you mean interest-only
they are harder to get than in the past - https://www.moneysavingexpert.com/mortgages/interest-only-mortgage/
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You'll probably find it difficult to remortgage a property while it's on the market. Mortgage lenders don't like short-term lending and will shy away from being asked to provide bridging finance at first charge/long-term rates.
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
OP is suggesting mortgaging the new property, not the old.
Perfectly doable, though it may be harder to find a new mortgage without redemption penalties in the initial term.
I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.1 -
I misread that. I was put off by the lack of information about the deposit for the purchase.
I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Unless earning £75k + , unlikely to qualify for an interest only mortgage from most lenders still in that market.
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It would help if you give more details. Will the property you own cover the full cost of the new property? What's your deposit?
I'm FTB, not an expert, all my comments are from personal experience and not a professional advice.Mortgage debt start date 11/2024 = 175k (5.19%)... Q1/2026 = PAID (3.94%)0
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