repayment vs overpayment on Interest Only Mortgage

Thorny

I have a' buy to let' mortgage that is currently on interest only. I was thinking about changing it over to a repayment, however a mortgage adviser recommended just to overpay the interest only mortgage. The reason being that this would not tie me in to a monthly amount and as long as I stuck to the same payment as a repayment mortgage would be, it would reduce the mortgage in exactly the same way.When I contacted the BS they said they couldn t advise me in detail, however there IS a difference to overpaying an Interest Only Vs Repayment. Could anyone give me their thoughts and advise?????

Thrugelmir

Do you have a residential mortgage on another property?

ValHaller

Thorny wrote: »

When I contacted the BS they said they couldn t advise me in detail, however there IS a difference to overpaying an Interest Only Vs Repayment.

They may be referring to the fact that if you overpay, the amount you owe goes down, so the interest reduces - which means that the regular payment also reduces

dimbo61

A BTL mortgage means you are letting out a property and therefore running a business.
Have you got an accountant ? Do you own the property you live in ? Do you have a mortgage on your home ?
You can offset the IO part of a BTL mortgage against your tax on the profit you make from renting

bigadaj

dimbo61 wrote: »

A BTL mortgage means you are letting out a property and therefore running a business.
Have you got an accountant ? Do you own the property you live in ? Do you have a mortgage on your home ?
You can offset the IO part of a BTL mortgage against your tax on the profit you make from renting

Good comment generally but you don't need an accountant for a single buy to let. Self assessment will need t be completed but is fairly starting forward for this.