Buy-to-let repayment mortgage?

Nooj

Anyone know if there is such a thing? We have an interest only one at the moment, the fixed rate on it ends this year and we desperately want to get rid of it in favour of a repayment one before the rates all go up again.

Senior_Paper_Monitor

Lots of them - the same number as interest only ones basically - pretty much any mortgage 'deal' offers the two alternatives (and some a mix) provided you meet the applicable criteria for each (which on a buy to let is not as draconian as on a residential).

Basically - choose the deal, choose the repayment method.

dimbo61

Can you not overpay the IO BTL mortgage now?
Give your lender a call and ask
I have a repayment BTL mortgage/loan

Nooj

Interesting, we were told we could only ever have an IO BTL mortgage when we took it out. Seem we've been the victim of yet another lying estate agent have we?

Thanks for the replies, I'll start looking into alternatives.

diable

Nooj wrote: »

Interesting, we were told we could only ever have an IO BTL mortgage when we took it out. Seem we've been the victim of yet another lying estate agent have we?

Thanks for the replies, I'll start looking into alternatives.

You believed an estate agent?

Nooj

Am older and wiser now :-)

horngkai

If you chose a repayment BTL mortgage, do you need to show that the rental can be 125% of the interest or of the repayment + interest cost?

kingstreet

horngkai wrote: »

If you chose a repayment BTL mortgage, do you need to show that the rental can be 125% of the interest or of the repayment + interest cost?

Without checking - no. Lenders calculate BTL viability on interest-only, not on repayment. It could vary though. Check each lender carefully.

Nooj

Not going well. We need a 100% mortgage and have negative equity on the property.

Thrugelmir

Nooj wrote: »

Not going well. We need a 100% mortgage and have negative equity on the property.

Then your only option is through your current lender.

HappyMJ

I thought the point of an interest only BTL mortgage was to maximize the deductions against the rental income so that there would be no tax to pay on the investment. The rent covers 125% of the interest and the extra 25% can easily be spent on maintenance, fees and charges. Once you start paying off the mortgage the interest becomes less and then you start paying tax on the profit. Am I wrong? I wouldn't remortgage to repayment I'd invest any extra rent over the minimum interest payable into another investment product such as a tax free ISA.