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Me and my wife will be looking for our first buy to let property in next few months.
My question is when seeing about a buy to let interest only mortgage, what time frame do you go for. 25 30 or 40 year
I always look to make the overall term as long as possible once a lender is selected. This means that should your circumstances change and you no longer meet criteria to remortgage after a few years, you've still got a mortgage contract for the remainder of the term.
By all means give me a call if you'd like to have a chat.
You can contact me via Direct Message, or 07788 219647 or call the team on 01206 654444 for personalised quote and advice
Hi onevibe1, I am in the same boat as you and am just about to take ownership of my first BTL. There are people on here who will be able to provide you with a world of knowledge about BTLs but from my experience, when you have an interest only mortgage, the length of the mortgage almost becomes irrelevant. You will probably end up renegotiating every 2 years anyway.
Thanks for the input. That's put my mind at ease.
I don’t know anything about you
but I would recommend you take some tax advice before you jump into BTL
if your investing in your own name look at section 24
it can effect you
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.
Thank you for the advice and yes will definitely get tax advice before i do anything. Will also speak to specialist buy to let mortgage brokers and basically educate myself by reading property books and forums before i get to buying property.
There are several points here.
1) if you are investing in a low yield area (eg London) then you are likely to be forced into a 5 year product unless you have a lot of capital.
2) if there are features such a not long leasehold then often lenders have minimum lease duration at the end of the term so you may wish a shorter term
3) all else being equal go or as long as you can as you have flexibility to repay earlier but no lender is happy being repaid later. It's the product which is more important and that's say 2 to 5 years.
Chartered Accountant, Tax Advisor and Mortgage broker
(and BTL portfolio owner)