Interest-only mortgage

[Summers.93]

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]

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

 

[Summers.93]

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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[diyhelp]

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!

 

[Feduk]

I have a similar experience. I was a first-time buyer, so whether or not to go straight to this type of mortgage. I'll be honest, and as a first-time buyer, I was pretty clueless as to what to buy and when to buy a house. The brokers at Sunderland moneyman made it very easy for me and walked me through the entire process. I was thrilled. You can tell right away that they are professionals and love their job. Contact Mortgage Advice Nottingham - they are a helpful team that does a great job and works until they get the best deal possible.

 

[bernetec]

Interest-only mortgages are the most advantageous that banks can offer us. Through an interest-bearing mortgage, you can stretch out your payments over many years without experiencing much financial hardship. But for your mortgage to go smoothly, I advise you to contact a mortgage broker who will be ready to advise you throughout the mortgage period. Don't be afraid to contact a professional. In my time, the lawyers from https://swpdxlaw.com/services/condominium-hoa-law helped me solve my housing problem quickly and politely. Without the help of knowledgeable people in one area or another, it is better not to conduct any business.