Interest only?

Tamarin

Although an avid reader I do not often contribute to discussions

I would like some general advice regarding the following

We own our property, but we would like to move. At the moment where we would like to move to the house prices are coming down and down

We have been thinking of perhaps remortgageing our property or interest only loan. We have our property on the market for 180k which is reasonable and have quite a few viewings

We would like to borrow 130k. We have savings to put towards a property. We are not sure how long we would need the loan for as properties where we live not selling quickly either.

Lots of number crunchers on this site so how much would this cost us a month

Any other ideas how to borrow 130k just until we sold our home then we would finish this off so we are again mortgage free

Any help gratefully considered.

Thanks

lynnexxxo

I'm a bit confused -

I'm assuming what you are asking is that you have found a property you want to buy and are having trouble selling yours, so want to go ahead with the purchase and put your existing house on a interest only mortgage?

Can you afford to pay two mortgages?

Would you not be better knocking off a few k of the asking price and getting shot of the current house?

UK007BullDog

So you own your property which means it is mortgage free?

Its not quite clear. You could remortgage your property to release the equity and then when you buy the property port the mortgage over of course selling and buying has to happen at the same time. Alternatively you could get a BTL mortgage on the property to live in and use the money to buy the other property.

But please explain again as I am somewhat confused by your post. You also need to give us your ages and your incomes, any other loans and the values of both properties to give you an idea.

Tamarin

Sorry for confusion

Yes we are mortgage free. We have our house up for sale, but at the moment not a lot of interest.

We are both 54. No debts. We have about 50k to put towards say a loan of 130k to buy a another property now whilst their prices are low or at least have money to try and get a better deal.

We bring home about £2,000 per month. We would be looking at a smaller property with less land for about 150k to say 160k no more as we know when our house sells we can clear the debt completely and be mortgage free again.

Amounts and time limits are all if's and's and but's as do not know how long it will take to sell our house, we have seen a couple of properties in this price range we like

Reading up on remortgages etc it is the set up costs which are expensive and also have to watch that we can pay off without penalties

We did think to sit and wait for our house to sell, then rent whilst looking for another property (not in our area) and put the proceeds of sale in high interest account which would go some way to help pay our monthly rent.

But forecasts are so gloomy we have been looking into other ways of raising the money

Again sorry for the confusion

SouthCoast

We have our house up for sale, but at the moment not a lot of interest.

Reduce the price.

lynnexxxo

An interest only loan (say 6%) will cost you £650 per month (plus any arrangement fees extra) so over a year will cost say around £8000. If you reduced the price of your house to get a quick sale you probably wouldn't be worse off.

Tamarin

Many thanks for the info

This is the info. we are looking for. It all helps

We can see why putting the price down would be lots better

Many thanks
Tamarin