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  • FIRST POST
    • zoesma
    • By zoesma 14th Jun 19, 7:05 AM
    • 5Posts
    • 0Thanks
    zoesma
    Interest only mortgage
    • #1
    • 14th Jun 19, 7:05 AM
    Interest only mortgage 14th Jun 19 at 7:05 AM
    Good morning
    We have been advised by husband's accountant to maybe take out an interest free mortgage.
    We own 2 houses already,which we rent out.,mortgages paid off.
    My husband is self employed,I do not work,I'm 63,
    We would like to carry on the renting of both properties
    We have about 70,000 sitting in savings accounts with very little
    interest.
    So the idea would be to use the savings as a deposit ,and his earnings,plus rents from properties to buy a small flat for us to live in ?This would be only for about 3/5years.
    What do you all think??
Page 1
    • k3lvc
    • By k3lvc 14th Jun 19, 7:13 AM
    • 2,755 Posts
    • 4,502 Thanks
    k3lvc
    • #2
    • 14th Jun 19, 7:13 AM
    • #2
    • 14th Jun 19, 7:13 AM
    Good morning
    We have been advised by husband's accountant to maybe take out an interest free mortgage.
    We own 2 houses already,which we rent out.,mortgages paid off.
    My husband is self employed,I do not work,I'm 63,
    We would like to carry on the renting of both properties
    We have about 70,000 sitting in savings accounts with very little
    interest.
    So the idea would be to use the savings as a deposit ,and his earnings,plus rents from properties to buy a small flat for us to live in ?This would be only for about 3/5years.
    What do you all think??
    Originally posted by zoesma

    Really ?? I've just remortgaged and must've missed a trick somewhere
    • AnotherJoe
    • By AnotherJoe 14th Jun 19, 7:17 AM
    • 15,967 Posts
    • 19,173 Thanks
    AnotherJoe
    • #3
    • 14th Jun 19, 7:17 AM
    • #3
    • 14th Jun 19, 7:17 AM
    I think you've not given enough information for anyone here to double guess your accountant.
    Presumably you are currently renting, and this is an alternative to renting for another 3-5 years before something else happens. But thats just a presumption, maybe you are living with your parents who after 40 years are fed up and kicking you out
    • zoesma
    • By zoesma 14th Jun 19, 7:30 AM
    • 5 Posts
    • 0 Thanks
    zoesma
    • #4
    • 14th Jun 19, 7:30 AM
    • #4
    • 14th Jun 19, 7:30 AM
    Thank s for that!!
    No we've been touring in our caravan,which I enjoy but my husband's becoming a bit fed up,he wants a base.Also in 3years I should receive my state pension.hes younger than me.
    Hope this helps
    Thanks
    • AnotherJoe
    • By AnotherJoe 14th Jun 19, 8:13 AM
    • 15,967 Posts
    • 19,173 Thanks
    AnotherJoe
    • #5
    • 14th Jun 19, 8:13 AM
    • #5
    • 14th Jun 19, 8:13 AM
    It doesn't really help. You said "this will only be for 3/5 years". OK you get your SP then. So? Why is that significant? What would you do differently? SP isn't normally so generous that it makes a radical lifestyle change to people.

    You haven't stated the rationale behind an IO mortgage.
    Is that because thats all you could afford? Or because you'd move in 3-5 years? Or you'd sell the other houses? Or its tax advantageous? Or you'd move elsewhere?
    • tacpot12
    • By tacpot12 14th Jun 19, 8:21 AM
    • 2,899 Posts
    • 2,623 Thanks
    tacpot12
    • #6
    • 14th Jun 19, 8:21 AM
    • #6
    • 14th Jun 19, 8:21 AM
    What is the plan to pay off the mortgage?
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always check official information sources before relying on my posts.
    • getmore4less
    • By getmore4less 14th Jun 19, 8:42 AM
    • 37,403 Posts
    • 23,082 Thanks
    getmore4less
    • #7
    • 14th Jun 19, 8:42 AM
    • #7
    • 14th Jun 19, 8:42 AM
    What do you all think??
    I think you need a better plan that covers a longer period and goals.

    to buy a small flat for us to live in ?This would be only for about 3/5years.
    Without knowing what will happen in 3/5 years difficult to understand what the goals might be.
    • Kentish Dave
    • By Kentish Dave 14th Jun 19, 3:11 PM
    • 806 Posts
    • 1,492 Thanks
    Kentish Dave
    • #8
    • 14th Jun 19, 3:11 PM
    • #8
    • 14th Jun 19, 3:11 PM
    Given the transaction costs would you not be better off renting?
    • zoesma
    • By zoesma 17th Jun 19, 11:02 AM
    • 5 Posts
    • 0 Thanks
    zoesma
    • #9
    • 17th Jun 19, 11:02 AM
    • #9
    • 17th Jun 19, 11:02 AM
    Many thanks to all
    After giving the figures and great deal of thought we've decided to not go ahead.!
    Many thanks
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