Thinking about moving, hopefully won't have a mortgage.

[Soulassassin]

OK, hopefully next January or February I'll have managed to get the mortgage paid off on the house. However me and my partner would like to move somewhere a bit further out in the suburbs once we've achieved this. My question is, is it possible to get an interest only mortgage (paying only the interest) secured on our current home and move without actually waiting for the house to sell? This would allow us to move without the hassle of being stuck in a chain and would make the house easier to sell being a vacant possession. I know its a bit risky going on the assumption the house will actually sell, and we'll be paying interest on a house we don't even live in while its for sale, but it will be a lot cheaper than what we're paying now anyway so quite affordable. Obviously once the house does sell then we'd pay the mortgage off again, factoring in the difference of the property prices.
Anybody done this or advise?
Thanks

[liveseytowers]

Wouldn't you just get an interest only mortgage on the new house, keep your old house for a bit (maybe rent if possible) and then when it's sold just pay off the mortgage on the new house? Can't see how you'd get a mortgage on your old house to buy a different house?

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[Soulassassin]

Probably depends on price of property tbh, if new house costs less but needs work might be easier to mortgage current home but if new house costs more, then that's the house that would need to be mortgaged.
Its more of a 'is this viable' type question, would a mortgage company allow me to do this? (Either way)

[flipper321]

If you're mortgaging a house you're not living in ther mortgage companies look upon that differently and I'd imagine you'd have a tough time getting anything other than a buy-to-let type mortgage?

[Squizza]

Hey,

I looked into this recently. I used to have an interest only mortgage but when the financial crisis happened and I had to remortgage, they then made me go Repayment. Something to do with the packages at the time only allowed that method.

It used to be the case that if you could prove that you had means to pay off the total at the end of the term then they would allow you. I would speak to an independent financial advisor and not the bank direct. Independent ones get exclusive deals and rates that the bank won't offer you. I know this through recent experience.

I hope this helps,
Max

[blacksheep]

You should be able to do it but you'll either get a shitty rate or there will be a penalty for paying back early (unless you transfer to new house and pay the interest for tie in period).