Buy to let or not

Mich63

I already have a house with a mortgage that I am renting out , plus a holiday home with a BTL mortgage. I am renting currently and have a 140k deposit to buy another house. Do I BTL again or get a normal mortgage interest only ? I earn 50k pa

SG27

I don't believe interest only mortgages exist anymore.

Yorkie1

Presumably you intend to live in the property if you decide not to go for a BTL mortgage?

As SG27 says, very few lenders offer IO mortgages these days. Those that do, have fairly stringent T&Cs e.g. max 50% LTV. You will also need to provide evidence of a repayment vehicle which is acceptable to the lender.

AlexMac

And if you've not already told the lender that you have let out the property on which you have (presumably) a mortgage originally granted to you as an owner - occupier, you'll have to come clean when negotiating your third mortgage. If you do, it will be to your advantage, as (again assuming you are honest and declare the rental income to the taxman) it will be in your interests (no pun intended) to offset the more expensive BTL interest against tax. The only downside is that if you have one of the historically cheap interest-only deals which were available 10 years ago as we do (a stunning 0.75% above bank base rate; i.e. 1.25% on an interest only basis, and portable when we move!) you'll never get such a bargain again, so your costs may creep up.

Strapped

SG27 wrote: »

I don't believe interest only mortgages exist anymore.

I have one. But maybe not for new mortgages?