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BTL moving to interest only

Khaderbhai
Khaderbhai Posts: 153 Forumite
Sixth Anniversary 100 Posts Name Dropper
in Mortgages & endowments
Family member has approx 5 rental properties and wants to add more properties each year. They currently do repayment loans and but are now looking at interest only mortgages as they believe the economics make more sense. 

Not my area so asking a few questions, go easy on me!

Can you just do a comparison to find the best interest only mortgage?
Are mortgage brokers useful to find better deals or best to DIY?
Can you use your main property to borrow more?


Comments

  • Hoenir
    Hoenir Posts: 7,742 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 10 March 2024 at 7:51PM
    "Repayment loans" isn't the normal approach to BTL borrowing. As the capital element of each monthly repayment isn't tax deductible. Assume in the past releasing equity is how additional properties have been funded. 
  • ACG
    ACG Posts: 24,860 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Yes.
    Yes. 
    Yes. 

    How easy was that haha.

    Speak to a broker, for BTLs it makes sense to use a broker as there are a lot more deals only available via brokers than there are by going direct. I say that as a broker that only really does BTLs for existing customers by the way so I have no vested interest in this. 
    I am a Mortgage Adviser
    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.
  • kingstreet
    kingstreet Posts: 39,415 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    There are lenders in the BTL market who offer only interest-only, Molo being one, so choosing this route will lead to more options.
    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.
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