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donkey
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« on: Thursday, July 22, 2021, 11:40:30 »

Morning all, Mrs D and I are thinking of moving to a more expensive property. What we'd like to do is just pay interest only, as we will sell up and move to a smaller house in 5-10 years.  We'd be putting in 60-70% equity and when we sell we will pay off the whole loan and use whatever is left to buy our final house.   The reason for the post is, would lenders be ok with this plan or not.  If not, how could we make it work? Cheers in advance.
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« Reply #1 on: Thursday, July 22, 2021, 11:42:44 »

Morning all, Mrs D and I are thinking of moving to a more expensive property. What we'd like to do is just pay interest only, as we will sell up and move to a smaller house in 5-10 years.  We'd be putting in 60-70% equity and when we sell we will pay off the whole loan and use whatever is left to buy our final house.   The reason for the post is, would lenders be ok with this plan or not.  If not, how could we make it work? Cheers in advance.

I can only assume you’re banking on continuing house price increases? What happens if the market goes into reverse?
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Chunkyhair

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« Reply #2 on: Thursday, July 22, 2021, 11:54:42 »

Morning all, Mrs D and I are thinking of moving to a more expensive property. What we'd like to do is just pay interest only, as we will sell up and move to a smaller house in 5-10 years.  We'd be putting in 60-70% equity and when we sell we will pay off the whole loan and use whatever is left to buy our final house.   The reason for the post is, would lenders be ok with this plan or not.  If not, how could we make it work? Cheers in advance.

From my experience getting interest only mortgage the lenders would be fine with this plan - they just want see a clear sound strategy for paying back the loan, which you have.

That said, 4 years ago when I did it it was pretty hard to actually get IO mortgage, and basically swung on earnings ( much higher needed for IO than capital + interest for some reason). It might have changed now though.

I would suggest having a friendly chat with you current lender as a kick off to see where you stand.

And given the good news comIng out of STFC at the mo, anything is possible, so go for it.
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« Reply #3 on: Thursday, July 22, 2021, 11:56:40 »

You should bear in mind all the associated costs of moving, if you are not paying back capital then you'll have to hope prices rise significantly.
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Berniman
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« Reply #4 on: Thursday, July 22, 2021, 12:07:46 »

Samdy is your man
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« Reply #5 on: Thursday, July 22, 2021, 12:09:39 »

Samdy is your man

Robert Angus?
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« Reply #6 on: Thursday, July 22, 2021, 12:39:28 »

Robert Angus?

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« Reply #7 on: Thursday, July 22, 2021, 12:45:59 »

he's Ben from Peep Show
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Berniman
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« Reply #8 on: Thursday, July 22, 2021, 12:51:24 »

I'm confused and really don't know what is going on..  maybe the heat is finally getting to me/others
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donkey
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« Reply #9 on: Thursday, July 22, 2021, 13:00:31 »

To answer a couple of questions,  we don't have a current lender, as we have paid off the mortgage.  As such,  yes we do eject house prices to go up, but if they don't then we just use some of our equity to pay off the debt where we sell and downsize.  Also, we won't need to move on a set date  so could ride out negative equity if it came to that.
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Samdy Gray
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« Reply #10 on: Thursday, July 22, 2021, 16:03:52 »

Interest only is still possible with some lenders.

If you need some advice donkey, I'm co-owner of a financial advice business and can put you in touch with our mortgage adviser.
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Berniman
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« Reply #11 on: Thursday, July 22, 2021, 16:24:39 »

So just to clear things up, you are not Rob Angus, right?
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“Everything we hear is an opinion, not a fact. Everything we see is a perspective, not the truth.” ― Marcus Aurelius

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donkey
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« Reply #12 on: Thursday, July 22, 2021, 16:34:15 »

Interest only is still possible with some lenders.

If you need some advice donkey, I'm co-owner of a financial advice business and can put you in touch with our mortgage adviser.

Cheers fella.  We're not desparate to move, but if we see something we like we want to know our plan could work. Thanks again.
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« Reply #13 on: Thursday, July 22, 2021, 16:38:43 »

So just to clear things up, you are not Rob Angus, right?

Sam <> Rob Angus.  I think, given the timing, that was a not so subtle reference to the incoming CE, given he also worked for a Building Society and we are talking mortgages.
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Samdy Gray
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« Reply #14 on: Thursday, July 22, 2021, 16:44:54 »

I can confirm I am not the new CEO of Swindon Town F.C.
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