mortgages - intrest only vs repayment
25-05-2007, 09:05 PM
#1
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mortgages - intrest only vs repayment
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When would you go for a intrest only?
Am I right in thinking that for a short term move, say 2 years in a property before moving somewhere bigger, its a viable option?
Alex
When would you go for a intrest only?
Am I right in thinking that for a short term move, say 2 years in a property before moving somewhere bigger, its a viable option?
Alex
25-05-2007, 09:11 PM
#2
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not really as when you buy a bigger place and more expensive its going to cost you even more, if you can afford to pay the mortgauge, get it paid, if you can only afford to pay the interest now, theres no way you will be able to get a bigger place and play the interest and mortgauge off, unless you have a pay rise or something when the time comes.
25-05-2007, 09:14 PM
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IMO an interest only mortgage is suitable for either investing the money that you'll have left from not repaying the loan into something that will grow in the future, thus allowing you to purchase the property completely..
Or hope that property prices rise, enabling you to re-mortgage in 2 years time using the new found equity as a deposit.
Or hope that property prices rise, enabling you to re-mortgage in 2 years time using the new found equity as a deposit.
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