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Remortgaging for 25 Years
samatron
Posts: 10 Forumite
Just spoke to a mortgage broker as the deal is about to expire on my buy-to-let repayment mortgage.
Basically, I bought a flat in Manchester, but had to move to London for work. So I converted the Manchester mortgage to a buy-to-let.
I have about 19 years left to pay on the mortgage, but the broker told me I should consider remortgaging for 25 years, as my payments will drop.
Indeed they would go down from about £500 to under £200, but wouldn't that mean I spend even longer paying the damn thing off?
With the extra £300 a month I'd be bringing in, it's not like I could even put it into a decent savings account with the pitiful interest rates going around.
It would be great to afford a flat in London, but would I be better off saving that deposit money by continuing to put equity into my Northern property?
Basically, I bought a flat in Manchester, but had to move to London for work. So I converted the Manchester mortgage to a buy-to-let.
I have about 19 years left to pay on the mortgage, but the broker told me I should consider remortgaging for 25 years, as my payments will drop.
Indeed they would go down from about £500 to under £200, but wouldn't that mean I spend even longer paying the damn thing off?
With the extra £300 a month I'd be bringing in, it's not like I could even put it into a decent savings account with the pitiful interest rates going around.
It would be great to afford a flat in London, but would I be better off saving that deposit money by continuing to put equity into my Northern property?
0
Comments
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A £300 drop?
Is the proposed mortgage interest only and the current repayment?I am a Mortgage AdviserYou 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.0 -
The proposed mortgage and my current mortgage are both repayments.
The adviser is quoting me rates of about 2.5%, which sounds pretty mad.0 -
How much borrowing? Property value? Rental income per month? Your salary?I am a Mortgage AdviserYou 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.0
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Looking to borrow £81,500
Property value £170,000
LTV: 48%
Rental Income £795 (£700 after fees)
Salary: £35k
Should I be looking to repay off as much as possible, or should I go for the minimum payment to build up savings?
I don't need more money to live off, as I'm comfortable!0
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