interest only mortgage

M

moonfish

Registered User
Messages
27
How long can a provider keep you on interest only my bank have been generally ok at moment with putting me on interest only on a house I've rented out I've no probs with my primary but will.never be able to pay capital on the investment property the rent is to low
Can you stay on it indefinitely until neg equity is gone and sell which could 20 years at this stage or put the balance against my primary when the mortgage term is up
 
i could be very wrong, but i thought interest only payments were limited to 3 years?
 
Well we have it now going on three years and think it will be extended for longer well will have to be cant pay it otherwise
 
There is no limit, down to each banks policy, but ideally there would be some plan in place to pay off the capital at some stage but we live in less than ideal times.
 
could maybe go for reduced capital shall never be able to pay full capital been realistic
 
moonfish said:
could maybe go for reduced capital shall never be able to pay full capital been realistic
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which is why I asked the question about ur life cover: if u are single etc then fine but if not and you snuff it with inadequate life cover who will be left with the shortfall?

Loss of income on your demise is one thing but to leave a big wedge of unpaid capital is irresponsible
 
yes you are right about the insurance will get it sorted at the moment its alright as it covers the loan but obviously later it wont
 
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