2 Jun 2016 05:46
buying a gaff that needs completely overhauling and updating before moving in.
want to cut my deposit from 25k to 20k and take a bigger mortgage with rates being so low at the moment. is this a pretty common approach or should i look at interest free cc instead etc?
2 Jun 2016 10:22
Adding £5k to the mortgage will be pretty small PCM addition, but over 20/25 years will add a few £k in interest. If it was me, I'd check the payments needed on the cc - then its paid off sooner. Sainsburys do an interest free over 24 months which would be £208 per month pay back if you did a full £5k, though check if they will give you a £5k credit limit though in the first place
3 Jul 2017 12:55
About to remortgage this week - plan is to go interest only for a 2 year period, plenty of equity in the property, then will likely remortgage the property again in 2 years as a buy to let on a repayment or sell it and cash in. Aim is to have a short sharp savings plan to raise more cash, let it out and bolster that plan or ride it out for another 18 months and have a healthy deposit for another place/sell it/upgrade.
The bank are asking what the plans are to repay the capital, even though they know there isn't really a financial plan in motion - There's enough equity in the property to settle. What should I be telling them, she's a bit of a jobsworth, not like it was years ago?
5 Jul 2017 08:07
Worth considering that the right to take a tax free lump sum could easily be removed at any time and has been rumored to be on the cards for some time.
posted 5 Jul 2017 13:29, edited 5 Jul 2017 13:29
I think we are going to stick monthly savings into a couple of ISA's, would this be enough to convince the bank if we say the purpose is to repay capital? 2 years down the line we have the options to withdraw the savings, sell the place or remortgage with healthy equity. Sounds like a sensible thing to do - just don't know anyone who's done this before.
Without a pension on my side so not sure it's a good route to go - another reason to keep the place and let it out.