A short term mortgage is a great idea – if you can afford it. You’ll pay a lot less interest and will be able to become mortgage-free quicker. The main disadvantage is that the monthly repayments will be a lot higher.
Realistically, you’ll only be able to afford the repayments on a short term mortgage with a small loan-to-value ratio. Many of those opting for short term deals will have either saved a huge deposit or are selling a home they’ve built a lot of equity in.
Most mortgage lenders have a minimum term (usually between three and five years) and a minimum borrowing amount on their traditional mortgage products. If these terms aren’t suitable, explore lenders that specialise in short term deals.
As with any mortgage product, the lender’s biggest priority is that you can comfortably afford the monthly repayments. You may want to use a professional mortgage advisor to find the most suitable deal for your needs. These individuals have specialist knowledge of the mortgage market and will be able to point you towards the most affordable deals that suit your circumstances.
If you can’t find a suitable short term mortgage, consider these alternatives:
| Response | |
|---|---|
| Both equally | 32.85% |
| Wait until you can put down a bigger deposit | 23.84% |
| Not sure | 21.9% |
| Get on the property ladder (with a lower deposit) | 21.41% |
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