From: "Ben" 
Newsgroups: uk.finance
Subject: Mortgage advice
Date: Wed, 11 May 2005 18:57:36 GMT

Hi,

I'm 19, in full time employment for local council. Me and my Dad have just 
baught a flat together for me to live in, and Id rent out the 2nd bedroom 
for around 300 a month (paying my share of mortgage!).

Agreed price was £114,500. Dad is 55. Mortgage broker we approached told us 
that with a £5000 deposit, the repayments would start at £600/pm for a 
repayment mortgage. Dad and I can afford this (£300 each).

Turns out the lender (Accord) will only offer us a mortgage over 16 years, 
which made the monthly payments too high - so we've ended up with an 
interest-only mortgage! As this has taken so long to sort out and we're 
worried the vendor may back out, we've gone for it. Mortgage repayments are 
not around £350pm starting June 1st! (No completetion date as yet, though!).

Dad's made up! Payments are less, but I'm worried. How are we going to pay 
off the capital of the debt? I know I probably won't be living there more 
than about 4 years, but I'm still concered.

I am going to throw in £300 a month anyways - what's the easiest way to save 
up money on the side? Can you save up say £15000 over five years and then 
throw that back towards the capital off the mortgage?  Don't know much about 
these mortgages, and am worried that if in 5 years I come to sell, and can't 
sell the property for more than I paid for it, I'll be stuck

Thanks in advance for any replies.

-
Ben