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Buy ti let mortgage that can be paid off sooner
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Kris35
Posts: 167 Forumite
Hi all,
Does anyone know if there is such a thing as a buy to let mortgage that allows you to pay it off sooner rather than later? I'm looking for a deal where I can pay the whole thing off when I can if I get a lump sum (such as a sale from another house), and not be tied into a long term mortgage I can't pay off when I want to.
Many thanks,
Kris
Does anyone know if there is such a thing as a buy to let mortgage that allows you to pay it off sooner rather than later? I'm looking for a deal where I can pay the whole thing off when I can if I get a lump sum (such as a sale from another house), and not be tied into a long term mortgage I can't pay off when I want to.
Many thanks,
Kris
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Comments
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Now there are a number of BTL mortgages which can be either Interest only or repayment.
We have one that allows 10% repayment off the outstanding balance which is a fixed IO deal.
If you took a tracker deal you might be able to repay even quicker.
What I have got to ask you is WHY?
You normally need to put down a 25% deposit but there are some deals with 15/20% deposit.
You can offset the Interest Only part of the mortgage against you TAX on the profit you make from renting the property.
So why would you want to pay if off0 -
Well thanks. Actually this is on behalf of someone else. He is looking to pay off any mortgage asap so there is no interest to pay. He doesn't want to pay years of interest and would rather have the option to pay the whole thing off if he wants to. As I understand it, the sooner a property can be bought outright, the better?0
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He would need to find a product with no early repayment penalties.
Consult comparison sites and an independent broker to establish what is available.I am a mortgage broker. You 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks Kingstreet.0
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There are a number of buy to let lenders that offer suitable products.
Have your friend consult an independent mortgage broker.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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 -
You can offset the Interest Only part of the mortgage against you TAX on the profit you make from renting the property.
So why would you want to pay if off
The property needs to physically make a profit before the benefits of the tax shield effect come into play.
Assuming that the property does indeed make a profit, the borrowing still costs money so may cost more post tax to continue than to pay off.0
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