Interest only mortgage

[craigjm]

Is it possible to have an interest only mortgage without an endownment type insurance policy to pay off the lump sum? I was wondering if you could have an IO mortgage and then simply save up to pay off the capital, paying it off in stages as you go through the loan term?

[LordHaveMurci]

craigjm said:

Is it possible to have an interest only mortgage without an endownment type insurance policy to pay off the lump sum? I was wondering if you could have an IO mortgage and then simply save up to pay off the capital, paying it off in stages as you go through the loan term?

I have but it was set up 9.5yrs ago, I think they're much harder to find now if you can get one at all.

[Sarnie]

Yes it is, but it is LTV and lender dependant.

[marcosgt]

I'd imagine lots of 'buy to let' deals are on this basis.

M.

[sawman]

I was talking to my bank about these a few weeks ago. Basically, their position was you cant have one unless you have a vehicle to pay off the capital, they wont accept "I'll pay it off a bit at a time" As my expected mortgage term would coincide with retirement, they agreed that they could do an IO deal, but only to the level of the expected lump sum I would be due.

[Sarnie]

marcosgt said:

I'd imagine lots of 'buy to let' deals are on this basis.

M.

Yep, but BTL mortgages are unregulated

[craigjm]

swerni said:

Mine seems fine with it.

Who is your provider if you done mind saying?

[seaninog]

Ironically if you're over 65 there are now a range of IO mortgages (albeit with limited LTVs) that give greater flexibility in this regard than if you're under 65! No upper age limits and 25 year terms available... and it's a growing market...!

FYI http://www.choice-loans.co.uk/mortgages-for-over-6...

Edited by seaninog on Sunday 23 September 20:39

Edited by seaninog on Sunday 23 September 20:39

[GT03ROB]

Got one 18 months back, no problems.

[Octoposse]

We have one but treat it as a 'normal' mortgage by paying extra every month.

Halifax, but their admin is lousy when you want statements, etc.

[clarkey]

This is what I do with First Direct. You can make payments as you like, and can withdraw them later if you need to.

[chris7676]

Could an offset mortgage work like this?

[98elise]

chris7676 said:

Could an offset mortgage work like this?

Thats the best option, and its what I've done. All the benefits of paying down a mortgage, with instant access to yhr cash if you want it.