Buy to let or not?

zoea_2

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?

CloudCuckooLand

A remortgage will have to be on BTL terms.

Your current lender may extend the CTL, they may not.

Thrugelmir

Does your lender know that you are letting the property out?

GuidoT

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.

Conrad

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.

CLAPTON

why don't you just over pay the existing mortgage?

what interest rate are you paying?

zoea_2

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.

Thrugelmir

Who is your current mortgage lender?

zoea_2

The Woolich