Mortgage changing advice...Help and advice needed

mushymatt

Hi,

I currently own 2 properties - one I live in, and one I rent.

I'm trying to figure out what my best options are to lower the mortgage payments on both.

House I live in:

Estimated value of £300K. Mortgage amount £55k.

Current introductory mortgage interest rate: 3.19% - from 01/08/14 5.99% (current monthly interest only payments of £135)


Property I rent:

Estimated value of £130K. Mortgage amount £90k.

Buy to let mortgage of 4.8% (current monthly interest only payments of £368)


In a roundabout way I owe £145k

Both mortgages are interest only. I'm open to changing that.

I have £35k in savings too.

Does anyone have any tips/ideas/plans as best to proceed. Or would I be best leaving things as they are?


cheers in advance.

getmore4less

mushymatt wrote: »

Hi,

I currently own 2 properties - one I live in, and one I rent.

I'm trying to figure out what my best options are to lower the mortgage payments on both.

House I live in:

Estimated value of £300K. Mortgage amount £55k.

Current introductory mortgage interest rate: 3.19% - from 01/08/14 5.99% (current monthly interest only payments of £135)

whats the ERC before 1/08/14.
any overpayment penalties.

Property I rent:

Estimated value of £130K. Mortgage amount £90k.

Buy to let mortgage of 4.8% (current monthly interest only payments of £368)

The interst will be an offsetable expence agains rental income.
again any penaties for changing or overpayments

In a roundabout way I owe £145k

Both mortgages are interest only. I'm open to changing that.

I have £35k in savings too.

Does anyone have any tips/ideas/plans as best to proceed. Or would I be best leaving things as they are?

cheers in advance.

Whats your tax rate and if 20% how close to 40% are you.



One option might be to consider restructuing the debt, if done propely you could secure upto the value of the property when first let on you main residence and still get the tax relief on the interest.

With penalies it may not be worth doing now but once they go it might be.

With a rental you need some cash reserves for voids and repairs so an offset may be an option to consider.