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20 or 25 years for a Interest Only BTL?
Victoria17
Posts: 35 Forumite
Hello everyone,
I'm about to remortgage to an interest only BTL. Fixed for 5 years.
After 5 years we will of course remortgage again, to avoid the SVR.
I can't decide if we should choose a 20 or 25 year product? The interest rate is exactly the same. Any advantages in picking one or the other? We will be paying off some of the capital as we go (up to 10% per year) if that makes any difference?
Thanks for your help, it really confuses me.
I'm about to remortgage to an interest only BTL. Fixed for 5 years.
After 5 years we will of course remortgage again, to avoid the SVR.
I can't decide if we should choose a 20 or 25 year product? The interest rate is exactly the same. Any advantages in picking one or the other? We will be paying off some of the capital as we go (up to 10% per year) if that makes any difference?
Thanks for your help, it really confuses me.
0
Comments
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@victoria17 For an interest-only BTL mortgage, I can't really think of any reason why you wouldn't just take the longest term available for the lender offering the best rate for your case.
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Long as possible, you can't be sure you will be able to extend in the future2
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as above, 35 years if available. No reason to choose any other term unless you specifically want to be selling assets prior to retirement for instance1
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I'll be remortgaging for sure after the initial 5 year fixed rate expires, that's why I wasn't sure...
But from the replies I'm guessing the longer the better then 😃
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You don't get to choose the lenders decide.Victoria17 said:I'll be remortgaging for sure after the initial 5 year fixed rate expires, that's why I wasn't sure...
But from the replies I'm guessing the longer the better then 😃
You could be stuck with the first lender and not be in a position to change term with them.0 -
BTL mortgages often differ to residential. Overpayment tends to be less flexible. With ERC's imposed throughout the fixed term period.0
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My BTL mortgage with Santander allows 10% overpayments each year while in a long term fix and I think alot more BTL lenders are now allowing this.0
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