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Hmmm... one broker told me no you can't get an interest only mortgages anymore, the other said yes no problem - in fact all of the interest rates don't change whether you're on a repayment of interest only mortgage.
Has anyone here got an interest only mortgage recently with a roughly 10-20% mortgage?
Thanks,
mnbv
(p.s. I'd be investing the difference between the repayment amount and the interest only amount, so please don't divert my thread by telling me I'm a financially reckless parasite!)
I got an interest-only mortgage a few months ago (it was only for a few weeks though as I was using it for bridging). It was with Abbey National.
The FCA became quite interested in interest only mortgages when it began its Mortgage Market Review and this caused a lot of companies to either severely restrict their lending criteria or pull out of the sector altogether.
We got one in August but that was on the house we were moving out of.
It was with Abbey National.
Do they even exist any more?
As a brand name under Santander, yes.
As a brand name under Santander, yes.
Err, not sure they do. And to confirm Santander will only let you do 50% on I/O
[quote=oxnop ]As a brand name under Santander, yes.
Err, not sure they do.
I could scan in the mortgage papers I suppose ...... 🙄
the other said yes no problem - in fact all of the interest rates don't change whether you're on a repayment of interest only mortgage.
Been able to switch to one recently. Though I would suggest asking the broker who said yes...
Why would you want an interest only mortage? Reason why they aren't that available is because its a ticking timebomb.
[quoteWhy would you want an interest only mortage? Reason why they aren't that available is because its a ticking timebomb.
Not if you live in that London….
Why would you want an interest only mortage? Reason why they aren't that available is because its a ticking timebomb.
Or your partner isn't working for a few years whilst the kids grow up and you only have one wage... When they say it is a 25 year deal it turns out you can actually swap before the end, who knew!
Nothing wrong with them at all, provided you a) understand what it is and b) are sensible. Which applies to any borrowing.
I got one in July (remortgage). The mortgage was a fairly small percentage of the property value though and I also had to provide quite a lot of proof that I had some kind of coherent plan in place to repay it.