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buy to let mortgages

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Author Topic: buy to let mortgages  (Read 636 times)
Newbie
Posts: 1

I like property

« on: March 16, 2018, 11:03:03 AM »

hi

i have 4 property's and have a financial advisor who has set up mortgages on interest only. i was told there was no option of a repayment option.

my question is is this the best way of doing it or would it be better to have a repayment option thanks in advance for your help.

Global Moderator
Hero Member
Posts: 511

Permanently stressed out

« Reply #1 on: March 17, 2018, 02:35:40 PM »

Please.... of course there is always a repayment option.  :o

Either your advisor is a moron, or you didn’t understand what he said or he is flogging a product with a larger commission to you.

There is no ‘best’..it depends on the individual’s financial discipline....
Most interest only mortgages have a right to pay 10% of the loan back each year so you have the benefit of a lower monthly commitment but an option to overpay and simulate a repayment mortgage but make the payment when you like... the danger is you spend the money you earn instead of applying to the mortgage because you can’t control yourself.

If you can’t control yourself then get a repayment mortgage when you come to remortgage.

Suggest check your mortgage terms to see if there is an option to pay back the capital even during a ERC period.

Best of luck
« Last Edit: March 17, 2018, 02:49:17 PM by theangrylandlord »
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