Buy To Let Offset Mortgage?
Options
adam1982
Posts: 50 Forumite
Is there such as product as a buy to let offset mortgage?
0
Comments
-
-
Hi,
Because i have a property that wont sell at the moment and i currently have 82k outstanding mortgage. I want to pay off a further 40k and then have the remaining 40k on an offset buy to let. I would then keep another 40k in the offset account rather than tie it up at the moment.
If you think im talking 'b******s just say!0 -
BTL mortgages come with an arrangement fee of 2% - 3.5% of the amount advanced. Or in the case of the post Office a flat £1,500.
You may find that BTL lenders won't be interested in a £40k advance. As there's insufficent profit for the trouble of lending. Higher initial fees discourage applications.0 -
good point.
If i did want to look into this further is an offset buy to let mortgage actually possible?0 -
-
I'm not aware of any BTL lenders offering offset products, as there is virtually zero demand for it. Interest costs on the Buy to Let can be offset against the rental income, so for most people it is counterproductive to offset savings against the mortgage debt as it may increase any tax bill. If you want to be able to pay the lot off I would take a deal with no redemption penalties, or alternatively a good 2 yr fixed rate (or whatever type of deal suits) and just stick it in savings and pay the mortgage off at the end of the fixed rate.0
-
thanks for the replies guys!
I think based on your advice the interest only option would work out best.
One thing i am unsure of is if we have a buy to let mortgage does this effect how much we can borrow for our lived in house mortgage or do they treat it as a separate thing?0 -
Completely separate as long as it is self financing.0
-
-
hi all, hope its ok to comment on such an old thread but you might be able to help me,
regarding an offset b2l mortgage, for example clydesdale banks current offering with no early repayment penalties etc, could this be a better option than a fixed rate that carries erc's, even if i dont offset anything against it it may save me if i renovate and wish to sell quick.
thanks for any replies0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards