Value of current ppr (inherited) : 250k
Cash : 100k
Value of prospective ppr : 425k
Mortgage Required : 75k
Basically, my question is what kind of mortgage and over what term makes the most sense? I will be a first time buyer (current ppr was inherited) so should it be interest only in order to maximise relief? Or 75k spread over the shortest period to clear the balance? Or even invest cash and take out interest mortgage for 175k?
I don't have the arithmetic ability to figure this out!
Interest only will obviously be cheaper but (a) it's not usually the best option for owner occupiers as opposed to investors and (b) how will you plan to clear the capital sum borrowed if you did go interest only? This may all be moot since many lenders will not allow owner occupiers to go interest only for the full term of their loan as far as I know.