Buy-to-let mortgages - paying off? Interest only?

lad22

Hello,

I have a couple of BTL mortgages and obviously in the past interest only made commercial sense. I also have some savings. Now that the tax advantages are being tapered down, how can I work out if it's more worthwhile to pay off part of the mortgage, and if so, how much? Obviously I get taxed on my savings as well as my rent. I also need to remortgage one as the rate is poor. Should I go for interest only again?

Thank you for any thoughts!

glosoli

Putting aside what is the best course of action tax wise,

If you were thinking about putting the mortgage onto Capital and Interest, it may be best to retain it as interest only, and then set your monthly repayments to what they would be on a Capital and Interest basis, then that way should you see a need to reduce your outgoings (void periods, perhaps?), then it's just a phone call away rather than a full application back to interest only.

Thrugelmir

lad22 wrote: »

I have a couple of BTL mortgages and obviously in the past interest only made commercial sense.

In the past capital appreciation was where the money was to be made. Hence people used interest only mortgages to fund their purchases. Leveraging up many times over. With lenders such as Bradford and Bingley being at the forefront of the lending market.