Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

Interest Only mortgage

12 replies

Yogalover71 · 20/12/2019 17:39

Hi , we are looking to go into an interest into
Mortgage to save money while our kids are at private school . How easy is this to do ? We are due a substantial inheritance in the death of relatives in the future but need money now ! Any ideas ? Has anyone done or and how easy was it ? Thanks

OP posts:
fromdownwest · 20/12/2019 17:47

Very very tricky.

Most lenders will request a minimum income of £75k

The only solid repayment vehicles that most will take are ISA's or OEIC's. A UK registered pension scheme.

Inheritance will not be taken due to the risks, parents may leave it all to a cats home, your siblings, spend it etc. Plus it may get used up for care home costs.

The only other route is a temporary interest only option based on financial stress, Paying for Private education would not fall into that category.

In summary, very unlikely.

LaurieFairyCake · 20/12/2019 17:54

You can take out an interest only loan and set up a repayment vehicle to pay it off and then cancel the isa etc once mortgage is in place

Spaghettio · 20/12/2019 18:02

We did this recently. We were due to remortgage anyway after our 5 year deal ran out. So we've remortgaged onto an interest only deal. This is for a fixed time (5 years I think). Then we'll move back to paying off the capital.

Our reason was also because of school fees, so it is possible. But we only have about half of our mortgage total to pay off, so the LTV rate might affect the offer.

Original poster
Yogalover71 · 20/12/2019 18:36

Hi spaghettio... wow ! Brilliant.... was this a new house or same house different deal ... mortgage is HSBC ...

OP posts:
Spaghettio · 20/12/2019 19:42

Same house, just due for a new deal. Originally we had our mortgage with Santander. Now we're with Halifax. We don't bank with either of them - we're with HSBC.

fromdownwest · 21/12/2019 13:26

Hsbc - good luck!

Original poster
Yogalover71 · 21/12/2019 14:36

Why good luck ?!

OP posts:
fromdownwest · 22/12/2019 23:14

Notoriously picky and fussy underwriters.

Most brokers stay away from them unless its a squeaky clean case.

Shame, as their rates are excellent

Panicovereveryone · 27/12/2019 21:06

Totally doable. Whether it’s a good idea is another matter. You clearly can’t afford fees

Original poster
Yogalover71 · 27/12/2019 22:17

Thanks for that ... we are due a substantial inheritance from 3 people so feel it is a good idea

OP posts:
pollyhampton · 27/12/2019 22:20

How can you guarantee on receiving inheritance money? What if it was needed for care fees?

Panicovereveryone · 28/12/2019 09:23

Make sure your finance can be sustained until all parties are 95 - you’d be surprised how long some people can live.

People do have interest only when kids are at school, but usually in a property that can be easily downsized from.

Don’t get trapped with no exit plan.

New posts on this thread. Refresh page