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Buy to let or not?
zoea_2
Posts: 5 Forumite
My mortgage deal ended in June 2009 but because of low rates I've only been paying off around £280 a month. Not so good for paying off the whole mortgage.
I've been renting my property for four years with a reliable tenant and considering switching to a buy to let mortgage in order to pay off more a month however considering the deals for buy to let it don't seem worth it. Do I or don't I?
I've been renting my property for four years with a reliable tenant and considering switching to a buy to let mortgage in order to pay off more a month however considering the deals for buy to let it don't seem worth it. Do I or don't I?
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Comments
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A remortgage will have to be on BTL terms.
Your current lender may extend the CTL, they may not.Act in haste, repent at leisure.
dunstonh wrote:Its a serious financial transaction and one of the biggest things you will ever buy. So, stop treating it like buying an ipod.0 -
Does your lender know that you are letting the property out?0
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Buy to let deals are a bit rubbish at the moment, but I am not sure what kind of mortgage you have at present if you are letting it out.
From a tax perspective, there is no point in paying off a let properties mortgage as this will just increase your profit / income and consequently increase your tax liability.
If you have a better use for the money, then I suggest you put it elsewhere, otherwise you are effectively putting in taxed income to increase your tax liability.
If you do want to overpay, many lenders will allow this - you should check, I would not switch deals just because you want to pay off the mortgage.0 -
Aclient of mine with C&G did subsequently let her flat and called them to advise of this. They left her on the same low residential deal and just charged £150 fee.
You have nothing to lose by asking your current lender. You may want to test the water by saying you are thinking of letting it out.0 -
why don't you just over pay the existing mortgage?
what interest rate are you paying?0 -
Thanks for taking time to reply, food for thought definitely.
The mortgage lender doesn't know I'm letting the property. I'm considering remortgaging to a buy to let for peace of mind as well. Considering the current state of the housing market which is also non-existent where the property is located I would go into negative equity if I sold so I'm going to hold on to it for a few years yet.
Paying off a large chunk of the mortgage is an option. Would this be advisable? Currently I owe around £77,000 and could pay off half if it was worth it.0 -
Who is your current mortgage lender?0
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The Woolich0
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