Advice needed for BTL mortgage

leesharp

Hi all,
Sure this has been asked before,but i could really do with your help please.
i really need advice for a BTL mortgage,and should i go for a repayment or intrest only? Just really need independent advice ffrom you guys .Also ive been told that its best to let a broker do the legwork for me,ive also read that some charge a fee and some dont,why is that?
Ok Thanks in advance

Lee

Robert_Sterling

The reason some charge a fee and some do not charge a fee is partly because they get commission from the lender and partly because many people think they are better off if they do not pay fee.

However some brokers will charge a fee and then give you part of their commission.

leesharp

Hi,many thanks for the reply,now at least i know :-)

Lee

UK007BullDog

BTLs are an investment so the interest only mortgage should be covered by the rent you get.

However personally I think it would be best to have a repayment mortgage if you can afford it as that way you are reducing the mortgage amount. So one day if you keep the property it will be 100% yours. A nice supplement when a pensioner to have rental income which is all yours (after tax that is).

silvercar

you only get tax relief on the interest payments you make. so interest only and you get tax relief on all your mortgage repayments, repayment mortgage and you will need to get the interest amount from your lender and only claim tax relief on that.

leesharp

Hello,

many thanks for the advice guys.

Lee

ossie1_2

Ask around your friends and family and get them to recommend someone they have used when arranging mortgages. Ensure they are authorised to give you advice under the financial services act and discuss the possibility of fees.

Nowadays, many charge fees for their service and advice. All advisers have to achieve the necessary qualifications and as a result may charge a fee. This is not a bad thing as with most large financial transactions you may have to pay a professional fee. ( ie, solicitors, accountants, estate agents, etc ) However, beware of inappropriate costs ( too high ) and if unsure shop around to ensure they are competitive.
Equally, as regards to interest only or repayment ask the adviser? Unless someone knows your personal circumstances in full they are not in a position to advise you correctly.
As regards Buy to let mortgages, they are not complicated but they are specialised so ask the adviser for their experience in dealing with them before

Good luck