Help Please - Repayment or Buy to Let

ChesterSav

Hi All

This is my first post, I have read the forum for a while now and would really appreciate some advice. I will be coming to the end of a 5 year fixed rate repayment mortgage soon.

I bought the house in 2008 as an investment as I am in the Armed Forces and at the time my parents were looking for somewhere to live. Due to my guarenteed income I based my repayments on what I could afford without any rental income, and I have never received any income in terms of rent.

I have never missed a payment and my monthly repayment should reduce significantly at the end of my current deal. My real question is:

If my parents make any form of monetary contribution do I require a Buy to Let mortgage. I am not looking for any loop holes, I just want to do the right thing and not leave myself open to any kind of repercussions for my ineptitude.

Many Thanks

kingstreet

No. There are none.

You can purchase a property for family to live in with no repercussions. If they want to contribute to the cost of the house by giving money to you, that is their prerogative.

When the fix ends, the mortgage will roll onto the "follow-on" rate and nothing else will happen. However, I suggest you start making additional payments towards reducing the actual capital, rather than paying only interest.