TheRivieraKid Posted July 14, 2021 Share Posted July 14, 2021 Bit off topic, but my mortgage is due to be renewed soon and I’m looking at switching to interest only (5yr fixed rate at 1.14%), and investing the difference. I meet all the income criteria etc. but need to present an approved repayment vehicle. Has anyone here done this? I’m mid-30’s and my latest pension forecast shows the mortgage amount would be around 30% of my age 60 pot. Can I just tell them I’ll be using the difference to invest in ISAs? Quote Link to comment Share on other sites More sharing options...
spyguy Posted July 14, 2021 Share Posted July 14, 2021 1 hour ago, TheRivieraKid said: Bit off topic, but my mortgage is due to be renewed soon and I’m looking at switching to interest only (5yr fixed rate at 1.14%), and investing the difference. I meet all the income criteria etc. but need to present an approved repayment vehicle. Has anyone here done this? I’m mid-30’s and my latest pension forecast shows the mortgage amount would be around 30% of my age 60 pot. Can I just tell them I’ll be using the difference to invest in ISAs? No. Theyd want to see something a bit more solid. IO are now specialist products. 95%+ of people need not apply. Quote Link to comment Share on other sites More sharing options...
captainb Posted July 14, 2021 Share Posted July 14, 2021 1 hour ago, TheRivieraKid said: Bit off topic, but my mortgage is due to be renewed soon and I’m looking at switching to interest only (5yr fixed rate at 1.14%), and investing the difference. I meet all the income criteria etc. but need to present an approved repayment vehicle. Has anyone here done this? I’m mid-30’s and my latest pension forecast shows the mortgage amount would be around 30% of my age 60 pot. Can I just tell them I’ll be using the difference to invest in ISAs? Chat to a decent mortgage broker. Each lender has their own criteria for the repayment startegy at end of term, hence go through a broker rather than stumbling through online. Remember at the end of the term you should potentially have the 25% tax free amount of your total pension as well to put in there as well as the ISA. I had one about 5 years ago. Was earning mostly in commission/bonus and it allowed "overpayments", which is essentially capital payment of upto 10% of the outstanding balance each year. So made sense for me. A quick look shows there's still a lot of products available. Don't listen to people who have been claiming "the banks are not lending" for over a year. Quote Link to comment Share on other sites More sharing options...
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