BTL mortgage advice with the Halifax

mustnotspend

Good call Dave.

Just rang them back - I had a part of my mortgage £12k, which was on for only 5 years. (A draw down to buy a sports car - seriously who was making my financial decisions???)

Anyhoo, extending the whole mortgage to 25years brought payment down by £200. So now alot mor manageable again.

RANT ALERT: this morning on the phone I asked the advisor, "What else can i do to bring the monthly payment down.. She said "we've done all possible."

Now I ask specifically: Can I extend the term and I get a yes, of course!

Grrrr

kingstreet

How does Halifax react to a request to change to Interest-Only no RV if you go on the CTL premium rate?

mustnotspend - you are only using the mortgage interest to offset against your rental income for tax purposes and not the full capital & interest?

mustnotspend

kingstreet wrote: »

How does Halifax react to a request to change to Interest-Only no RV if you go on the CTL premium rate?

Not well. They need to see evidence of a repayment vehicle. Savings or endowment to the value of mortgage or pension to the value of £1million! No idea why 1 million...

kingstreet wrote: »

mustnotspend - you are only using the mortgage interest to offset against your rental income for tax purposes and not the full capital & interest?

Yes, indeed - I've had loads of other costs in the 2 years I've been renting. Boiler replaced, bathroom replaced (like for like so treated as cost not capital) and I've had to buy every single appliance in the last couple of years! Once you add that to the management fees, gas and elec safety certificates, insurance, etc etc = no (or very low - not sure now) profit...

That said I'm hoping there is nothing else that needs spending money on now!!! Famous last words...

kingstreet

IMHO it would be churlish and hypocritical of Halifax to insist on a repayment vehicle for interest-only mortgages during a period where a property is let.

They load the interest rate to reflect the increased risk in what I think they term a commercial activity.

Expecting a landlord to accept the downside of a mortgage for this commercial activity whilst being unprepared to provide the usual upside asks a lot.

I'm going to raise this next time I speak to a BDM. It may be useful if the other brokers could do the same to see what the consensus i,s up and down the country.