Interest Only Mortgage Question

Is it feasible.....yes, as long as you can get a 60k mortgage, and can take the loss if house prices fall, since you seem to be definite about the 2 year period. Most people with negative equity (ie house price < mortgage) could sit there and wait for prices to rise again. If you really need to sell in 2 years, could be an issue if prices fall.

Perfectly feasible. Almost any lender will do it.

Rob Graham

In message , Mikeb2168 writes

Yes, it's quite normal. - most brokers can help you with this.

Yes - and put a tenant in there for 2 years so you can offset the interest payments against the tax you would have to pay on the income - with luck it may not cost you anything!

Depends on the terms of the loan. Some let you repay without penalty.

You probably don't want a fixed or discounted rate mortgage if you intend to repay early.

You may have to but you may not. Check the terms of the deal. If you go to a mortgage broker he will be able to select a loan with the terms (including the early redemption penalty) that suit you.

Rob Graham

redemption fees -

there is always an admin fee for closing the account though, but that should be less than 100

But watch out for capital gains tax if you don't live in the house, especially if the purchase price is below market value. You migth want to get a formal valuation so yo uavoid paying tax on the value of the gift part of the transaction.

But if the house is your normal residence there is no CGT of course.

Robert

In message , Jonathan Bryce writes

There are loads of discounted mortgages with no early redemption penalties

maybe 3 or 4 years ago ... or in 5 or 6 years time, but i would think very carefully about the 'good profit' you hope to make over the next 2 years