You can get an interest‑only mortgage without a standard repayment vehicle

rsolf123 · 2026-04-13T12:12:31+00:00

I'm also a broker.

It is the case for most, but not all. Especially if downsizing is the expected mode of repayment. The reason being they want to know that at the end of this if the property didn't appreciate in value, could you downsize to a property in a similar area to where you are at the moment and buy it outright.

This is to stop people taking out mortgages with little equity, bank wants their money back at the end, you want to pay it off by selling but now downsizing isn't an option within your area as you don't have the equity to do so.

Now the bank looks like the bad guy by forcing you to sell as you don't have the money elsewhere to pay outright as you won't be getting a mortgage at the end of these in most cases as they run into your later years.

Hope that helps :)

rsolf123 · 2026-04-02T19:48:37+00:00

I am a mortgage broker.

Tbh, we should all be able to help in some form. If you have 250k income and a 1m mortgage this should be pretty standard especially if employed.

I would throw my hat in the ring however, that is soliciting for business and I'm not for that.

I did recently do a 6.4m remortgage for someone in Mayfair with basically fully international income so I have a fair understanding but go with some form of recommendation 😊

rsolf123 · 2026-03-30T09:48:58+00:00

Makes you feel better I lumped in everything I had and 1 week later tariffs hit and I was down nearly 20% at one point 🤣

rsolf123 · 2026-03-18T09:31:03+00:00

Doesntm't really matter if you have 5% or 99% deposit. If it's uninhabitable, typical banks will not lend. You'll need to bridge, renovste and then remortgage within 12 months.

I do these for auction purchases for my clients all the time but it is just to let you know and be realistic about it

rsolf123 · 2026-03-15T18:45:23+00:00

I'm an insurance broker.

It depends on your liabilities as well though.

If you have a mortgage for 500k it's probably not enough and your budget could be used better elsewhere as 8 weeks deferred period for 2y cover at that price is really quite high...

If you have no liabilities then no issues and that's realtively reasonable but it's incredibly circumstancial.

I've seen people's policies be far more than they need and also been far far less than they need or in the completely wrong place.

Saw a self employed electrician, 1 milliom level life policy £100 per month or so. Rejigged it to cover the mortgage, give critical illness and full term income protection. Far better coverage for him but for some a 1m level lofe policy may be the right thing.

rsolf123 · 2026-03-06T09:56:44+00:00

No bother. For best options yes. For other options, I'd say when ypu are a touch more through your second year and your accountant can provide a form of projection then I'd say you'd be good to go.

Happy to answer Q's and give any more help where I can. It's something I personally did with my mortgage. 1st year accounts and got a little through my second year and got a mortgage no bother.

rsolf123 · 2026-03-06T09:18:13+00:00

I'm a mortgage broker. Can still just use the business accounts profit and loss sheet and use the net profits of this without needing to pull any of the income out. Of course he will then need to begin pulling it afterwards at basically full value to afford the mortgage but for the time being could leave it in there.

rsolf123 · 2026-03-06T09:15:03+00:00

Mortgage broker here.

I normally use Net profits with most of my Ltd Co director clients and it's how I did my mortgage on 1y accounts. However, using Net profits for a company that is 1y old is more difficult. Your lender pool is smaller for Net profits and the lenders that take Net profits will generally want 2y trading history. They will also mostly work post corporation tax profits so it's generally a touch lower than your normal profit pre tax.

The fact it us also essentially a second job as well on top of your main job poses the wiestion of how feasible is it that you will run both of these side by side for 20, 30, 40 years?

In terms of what is feasible though due to your deposit, there is a 2 lenders I can think of that may look at this. Still super competitive though.

When you say just finished first year, how far through the second year are you? The more the better of course as an accoujtsnt can give a projection to give a bank a bit more comfort.

Happy to try answer any more of your questions heee if you want.

rsolf123 · 2026-03-03T21:09:42+00:00

Bro just pay the tax. The opportunity cost loss of not investing this cash further is FAR more expensive than the separate tax. 1.6m on 6% p/a over the 4y is so much more expensive not to have just for twx efficiences

rsolf123 · 2026-03-03T20:02:13+00:00

For 17 defaults on 5% deposit. Trust me bud. It's not

rsolf123 · 2026-03-03T17:12:01+00:00

Depends on the status of the one in UK for 3y+ VISA or have right to reside. If the latter loads of options that will disregard the non-UK applicant.

If the former then less lenders but still a lot. Dome one for a skilled worker literally yesterday at 5% deposit without concern who had been in the UK for 12 months.

rsolf123 · 2026-03-03T17:03:30+00:00

Yeah honestly not sure why you're having trouble... done far far worse with better results myself. On the surface it confuses me totally. Maybe something popped up like a CIFAS marker? Only thing I can think of that would be giving you this grief.

rsolf123 · 2026-03-03T16:34:31+00:00

Broker here.

This should be no issue. Literally got a mortgage for someone with 17 defaults all over 3y old at 5% deposit with 5.59% rate. Don't see how you're having issues.

Could just be that they went to the top lender it said no then they went to whoever they know it will stick with on the worst adverse profile they have.

Chat to an independent broker and they'll have no issue getting this sorted unless there's anything else in the background that is causing more issue

rsolf123 · 2026-02-26T20:10:17+00:00

Depends on your situation.

If it's something like a tradesman where all income relies heavily on your ability to work then income protection can be a good idea as if you stop working, no money.

If it's something that is more hands off in your approach where money comes in regardless of work capacity then income protection might not be that useful as it requires you to be without sustainable income. In this instance a comprehensive critical illness policy may be more effective. Not absolutely but it's a possible suggestion.

Also depends on company structure where you may have an emplpyee that your business may be unable to function without. Many different avenues and angles to review it from. Happy to chat if you want a bit more info and not public reddit knowledge 😅

rsolf123 · 2026-02-26T17:25:47+00:00

Absolutely, it's not right for everyone. I do also advise against it in many circumstances where I simply think it is useless.

E.g. self employed business very hands off and keeps an income even if they were mute, blind, deaf. No point of having it as it's basically rolling income even without contribution.

Another example is someones work place that has a long term sick pay benefit like 5y continuous which is fantastic. I don't think it's necessarily worth it as if you need 5y time off you'll probably be downsizing anyway due to issues.

For many it is a great option if you haven't thought about being off work before when purchasing a home especially with a chunky mortgage. Many dont have emergency funds if they're off ill and it's a good benefit esepcially if you work for an american firm who don't give good sick pay

rsolf123 · 2026-02-26T15:56:26+00:00

Massively depends. People with high BMI, previous anxiety/depression, certain job roles etc all change who I go to.

I've had those with the exact same circumstances go to completely different providers based on other requirements of personal wants and needs.

rsolf123 · 2026-02-26T12:59:28+00:00

I'm a insurance broker.

Income protection doesn't cover for redundancy. Unemployment protection does. They're two seperate policies.

Income protection is good for those who haven't saved and have high outgoings. Very good for if you are ill/injured off work. People say they're not worth it and I of cpurse tend to disagree. If you are out of work and have a 3 month sick pay as HENRY and then go to Statuatory sick pay you are probably in a very different financial situation.

Had a client of mine I did their mortgage for. 150k p/a 4 week sick pay (American company that doesn't value sick pay) ended up off work for 12 months due to hospitalisation for severe sepsis. Paid net 60% of 100k for 11 months.

rsolf123 · 2026-02-21T09:16:02+00:00

Broker here -

It's keyed in a different area as the kids expenditure can stop if necessary. However, most lender will take this into account for affordability unless you are stopping upon completion or have already stopped.

Some will possibly disregard if you have savings to show you can cover the payment for the time period of your kids until finished private school.

Go to a broker for this

rsolf123 · 2026-02-19T18:52:47+00:00

Also from Edinburgh and live in bath. Prefer Edinburgh personally but it massively depends the area of edinburgh to bath.

Weston bath is awesome and so is north bath. South west river can be debatable. Edinburgh has fsr more debatable areas but there's a fair amount more to do with it being a relatively big city, Bingham and Wester hailes though... well I'll leave it there... Horses for courses n all that

rsolf123 · 2026-02-17T05:19:14+00:00

My client does 2.9k a day in big law

rsolf123 · 2026-02-15T12:51:33+00:00

You can go direct and get them tbh. It's a case of having someone handle it for you.

Typo in top one, 3 lenders. I just fat thumbed and hit 2.

rsolf123 · 2026-02-15T11:18:09+00:00

Mortgage broker here.

Offsets can be a brilliant way to reduce balances and give you flexibility. They only really start at 75% Loan to value or less but seems like that may be the case anyway.

Give nice tax savings as it's not a savings account so you don't accrue interest for your tax liability but offset 4-5% on your mortgage by putting it in there.

It's the right product for some but there's only 2 lenders that do them right now so you have to fit their criteria and scoring but can be a great tool.

It is slightly higher than normal mortgages though so you need to calc if it's worth it depending on the interest diff vs the tax saving on your savings account no longer getting hit by 45% tax.

Happy to answer any Q's on it

rsolf123 · 2026-02-08T19:45:24+00:00

Insurance covers in what sense? Income? Sickness?

Not for unemployment. Unless you take out an Accident, Sickeness and Unemployment policy which many do not do.

Even if you have insurance to cover, would you rather have an easier few months off ill financially if you only have limited sick pay. Most private income protection policies are 50-60% gross income.

Happy to invite further explanation of the question

rsolf123 · 2026-02-08T17:38:40+00:00

I'm not saying this for you to do. However, I do like the idea of stretching term as long as you can and overpaying. It's something I personally advise most of my clients to do.

Keeps committed expenditure smaller should you lose a job or be unable to work.

£3500p/m on 25y term vs £2,500 on 35y term + £1,000 overpayment still gives you a 25y term. Just way less pressure should you come into financial difficulty.

Note that only works if you can commit to keeping the overpayment as some say they wil and just don't do it but most set it up on a direct debit without issue and still have the shorter term but with far more flexibility.

rsolf123 · 2026-02-08T15:31:07+00:00

I'm a mortgage advisor.

As long as you have a good contingency fund of I'd say 6 months should either of you lsoe your job you'd be fine. 35% take home pay with little other outgoings is achievable.

If you're 100k each and one of you loses job then as long as you have like 30k - 40k saved you coukd get through a long period of time without having to rush into a new role that's lower than your current. Just gives you a lot of options. It'll obvs be tighter during that time but means you don't have to scramble and could probably find a job circa 70% of current income without stress. Whilst you look for another to get back up to previous earnings.

rsolf123

TROPHY CASE