Interest only mortgages

Nukumai

VIGILANT22 wrote: »

It would appear this is a residential mortgage and not BTL, hence the repayment......

You are probably correct. But, assuming that the rental income is declarable, interest-only still remains the rational option (whether you choose to call the mortgage "BTL" or "residential").

Nukumai

C_Mababejive wrote: »

As an aside,surely an interest only mortgage would be ideal for say,someone who is single and has no family to speak of,to whom they would want to leave a property?

Not necessarily. If you believe that you can generate better returns than the repayment-mortgage rate (using the monthly "saved" capital component) then that makes perfect sense.

Similarly, if you believe in future inflation then, again, an interest-only mortgage is perfectly rational.

Horses for courses....

VIGILANT22

Nukumai wrote: »

You are probably correct. But, assuming that the rental income is declarable, interest-only still remains the rational option (whether you choose to call the mortgage "BTL" or "residential").

....Declared!!??... going by the reluctance and defensive reply Hmm!!
..also it isn't always the case IO is the best option, depends on client's risk profile, portfolio, exit plans, CGT liability etc...........

Nukumai

VIGILANT22 wrote: »

....Declared!!??... going by the reluctance and defensive reply Hmm!!

Kinda what I was thinking; hence my use of the term "assuming".

..also it isn't always the case IO is the best option, depends on client's risk profile, portfolio, exit plans, CGT liability etc...........

Correct. But, in the absence of irregular circumstances, IO nonetheless remains the more tax efficient arrangement.