PDA

View Full Version : Interest only mortgages



MrShed
02-12-2005, 00:30 AM
Sorry, realise this is completely wrong forum for this, but just thought some of the enlightened could perhaps shed some info on interest only mortgages for me(NOT btl!):

- Can you get interest only mortgages that are not BTL based?

- Do you still have the usual conditions such as no more than 4 times(for example) your annual salary, and do you still have to put down a deposit?

- Well into the realms of guesswork, but what kind of monthly payment would you have to pay on an interest only mortgage £100,000? Just a ball park figure.

*EDIT* oh that was the other question:

- Say you buy a property, renovate it, and sell it 3 months later. Do you pay CGT, or income tax, or both?? Karongo help me out :D

There was something else but forgotten for the moment, so shall edit when I remember!

Thanks in advance for the info guys.

Ericthelobster
02-12-2005, 08:10 AM
Can you get interest only mortgages that are not BTL based?Yes

Do you still have the usual conditions such as no more than 4 times(for example) your annual salary, and do you still have to put down a deposit?Yes

Well into the realms of guesswork, but what kind of monthly payment would you have to pay on an interest only mortgage £100,000? Just a ball park figure.£375 based on 4.5% interest rate - see http://mortgages.charcolonline.co.uk/mortgages/calculator/calculatorhome.aspx

- Say you buy a property, renovate it, and sell it 3 months later. Do you pay CGT, or income tax, or both?? Think it depends on whether property developing is your job or not. Certainly if it's not, then you'd be liable for CGT and not oncome tax; if it's your job, then I think just income tax? But not sure about that.

MrShed
02-12-2005, 08:16 AM
Thats great eric thanks, much appreciated. Kinda the answers I figured, but wasn't sure :D

MrShed
02-12-2005, 09:55 AM
Oh yes my other question: as you can to an extent on repayment mortgages, can you add some money over and above the house price on? For building/redevelopment etc?

P.Pilcher
02-12-2005, 23:56 PM
You can try - just ask your lender some will some won't and the valuation change since purchase is a factor. Sometimes they try to make it a personal loan at a higher rate.

P.P.

Ericthelobster
03-12-2005, 10:01 AM
There's really no difference at all in my experience as to whether you apply for a repayment or interest-only mortage, as far as the lender's criteria etc go. You might find find a lender demands proof that you are setting up a vehicle (like an endowment - spit) to repay the loan at the end of the mortage term, especially if the deposit is relatively small - but I've rarely even been asked for that.

P.Pilcher
03-12-2005, 10:24 AM
Although I have never been asked for proof that I have set up a mechanism to repay the mortgage at the end of the term it is quite simple as the investment is the property itself!

To get a better rate, I have just swopped one of my mortgage providers and the new one (due to my age) is only for 10 years and is secured on my PPR. There is no way I am going to find a financial product with affordable payments that is going to provide me with over £100,000 in a mere 10 years ... except the house I bought with the dosh a few years ago - and that is at present returning me £550 PCM!

P.P.

charger
04-12-2005, 09:46 AM
NOt to pay Cgt i'd just leave the money into my solicitor Bank account, till i invest somewhere else.
By the way if you 're interested i got a super deal at the moment : A new developement in Woolwich area, near train stn, 7 units left, 1,100 sqm, discount @ 19%, no stamp duty, stacks up on BtL, rates at 4.75%
I have reserved 2 units by paying 2k for each one .

RichieP
05-12-2005, 09:32 AM
PM me your email address charger.