Interest Only Mortgage
Posted on 29 August 2017 by Mary
I am 64 and my husband is 69. We currently own our own house mortgage free and have three other properties which are all mortgage free value of approx. 400000. We would like to purchase an adjoining property to ours which is coming on the market for 215000. We have a small amount of savings. Can we raise an interest only mortgage for this as we intend to sell the property on in due course. We currently let out 3 of the properties and get an income on this. We both have private pensions of over £20000 combined and rental income of £10000 plus our state pensions.
It looks to me like you are very asset rich but you have not mentioned if you have any savings to put towards a deposit. Assuming that you do not then your income will not support a mortgage of £215,000, even if we split it across your existing home and the new property. You can work out how much you can borrow here.
It might be possible to raise the money on your 3 buy to let properties as Lenders will use the rental income to assess whether you can afford the property and only look at your income to see if you will be able to cover any possible rental voids.
As you are planning on selling the property in due course you will have to be very careful about the type of mortgage you arrange, in particular taking note of when any early repayment charges are payable. You don't want any possible gain wiped out by charges for paying off your mortgage early.
I believe we can help you and that you would benefit from speaking to one of our independent mortgage advisers. Please call 0344 346 3672 and they will then be able to help you find the right mortgage for your situation.
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