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Interest Only on Second Home

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  • Interest Only on Second Home

    I'd be grateful for some advice please.

    I am likely to have a job move in the next few months to another part of the country that will last about six years until I retire. We will need to move house as a result but when we retire would wish to return to where we currently reside. Consequently we do not intend to sell the house we currently live in but would probably look to rent this out long term or let as a holiday home.

    Our current house is valued at £550k and has £77k on the mortgage remaining, which we are presently overpaying and are due to pay off in five years time. We know we may need to change this if renting the property out.

    We would wish to then buy a second home where we move to (as our main home) and can muster a deposit of around £125k. Realistically we will need to spend approx £500k on this second home in the area we are moving to and our preference is to take out an interest only mortgage (up to £400k) on this property. We will then sell it when I retire and use the proceeds and/or my pension lump sum to pay off the capital amount.

    Does this sound feasible/wise and are there any mortgage providers out there likely to make such an offer?

    Many thanks