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Interest-only mortgage

S

Summers.93

New Member
Bit late.... but what are people’s thoughts on a interest-only mortgage given the current interest rates being low and also I am a first time buyer so is it a good idea to go straight in with this type of mortgage?

Many thanks,

Dean




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Nicholas Wallwork

Nicholas Wallwork

Editor-in-Chief
Staff member
Premium Member
Hi Dean,

I personally would rather use an interest only mortgage when starting out... this is becuase you can get ore cash flow which will in turn help you re-invest more funds and grow quicker. Also inflation will errode the debt anyway and the rents will increase with time thus allowing you to pay off your mortgages easer in the last 15-20 years of your working life than the early years...

Hope that helps!
Nicholas
 
S

Summers.93

New Member
Hi Nicholas,

I think I would prefer this method to boost cash flow and allow spare cash to invest into another property! This was very helpful and informative

Many thanks,

Dean


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D

diyhelp

Active Member
Even though UK base rates are expected to move into negative territory in the short-term, this is unlikely to have any major impact on mortgage interest rates. So, is there an argument to suggest that now is the time to fix your mortgage rate for the long-term?

In reality, you could end up paying minimal interest and a long-term loan with the potential for capital growth from your property. This might just be an interesting time to get into the property market!
 
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