Quote:
Originally Posted by Dodger
Interest only Sirgezza. It is what most of my btl clients did, they worked the monthly profit to fund another property and so on, with no original mortgage repaid, no problems as made enough for the increasing equity.
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That's interesting Dodger. Is there any sort of life insurance required or any other payments of some sort over and above the interest?
Do the lenders charge a higher rate for interest only mortgages? What maximum percentage of the value will they give in the way of a mortgage? If the housing market takes a bit of a tumble the lenders could get burnt, so with this element of risk, I'd expect higher interest charges.
Going back to the original figures quoted some other costs to be included are insurance of property (but not possessions), maybe gas bolier cover and landlord certificate, and also take void periods in to account.