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2nd Mortgage - Buy to Let

Stewboy1978
Stewboy1978 Posts: 192 Forumite
in Mortgages & endowments
Hi

Looking for some advice please - I have a mortgate on my residence (Valued at £220k but mortgage is £150k) - I have a flat which I let...Worth around £130 and have a mortgage of £75k on this.

Fortunatly due to the LTV on this I don't need a buy-to-let. Currently I have a repayment mortgage on this - £450pm and the value I receive in rent is £420.

Currently I am ok with the difference....What I am wondering is would I be as well changing my smaller mortgage to interest only and trying to save to pay the mortgage off quicker?

Just a thought...

Thanks

Comments

  • toonfish
    toonfish Posts: 1,260 Forumite
    Stewboy1978 wrote:
    Hi

    Looking for some advice please - I have a mortgate on my residence (Valued at £220k but mortgage is £150k) - I have a flat which I let...Worth around £130 and have a mortgage of £75k on this.

    Fortunatly due to the LTV on this I don't need a buy-to-let. Currently I have a repayment mortgage on this - £450pm and the value I receive in rent is £420.

    Currently I am ok with the difference....What I am wondering is would I be as well changing my smaller mortgage to interest only and trying to save to pay the mortgage off quicker?

    Just a thought...

    Thanks

    I would personally, as you can also write off the interest payments on the rented property againt tax due on the rents. Providing the interest rates are similar it is logical in most cases to repay the residential loan first.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.
    This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.



  • regularsaver1
    regularsaver1 Posts: 4,930 Forumite
    The flat when you say you don't need a BTL mortgage due to the LTV - do you have permission of the lender though?
  • Stewboy1978
    Stewboy1978 Posts: 192 Forumite
    regularsaver1 wrote:
    The flat when you say you don't need a BTL mortgage due to the LTV - do you have permission of the lender though?

    Yes, because it is less than 75% lender are ok with this.
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