Interest Only Mortgages

I

ifah

Guest
Hi all,

What is the max interest only mortgage that people have squeezed out of the banks and what type of terms are they over etc ?

Cheers,
if
 
sorry - should have been clearer - Investment property.


cheers,
 
EBS will do 90% interest on first two investment properties. IIB will also do 90%
most lenders restrict term to 25 years for investment, and offer interest only for 3 to 5 years. ICS do a 10 yr interest only mortgage, but To my knowledge will only go to 85% LTV
 
Molly,
I am very naieve in these matters, when you say 90% do you mean you have to pay a deposit of 10% up front on the property and then you only pay the interest that is accrueing on the mortgage for how many ever years they give you?
 
I think what Molly means is that you get 90% of the purchase price as a mortgage and provider the other 10% yourself in the form of deposits etc. Other than that the difference between an interest only and annuity/repayment mortgage is that with the former you pay only interest each month and the capital outstanding remainds the same for the term and must be repaid through some other means while with the latter you are paying interest and capital each month with the capital guaranteed to be repaid at the end of the term. Does that help clarify matters?
 
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