INTEREST ONLY or REPAYMENT Mortgage?

INTEREST ONLY or REPAYMENT Mortgage? | Buy to let Investing

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Property Accelerator - James Nicholson

6 ай бұрын

INTEREST ONLY or REPAYMENT Mortgage? | Buy to let Investing
Interest-only or repayment mortgage: which is the smarter choice for your Buy to Let investment? In this video, we break down the pros and cons of both options to help you make an informed decision for your property investment strategy.
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Пікірлер: 54

@propertyaccelerator 6 ай бұрын

🔥 Get Access to the Property Accelerator Course HERE: property-accelerator.co.uk/join/

@robertwest8300 6 ай бұрын

I’ve just remortgaged a B2L with TMW with a 4.49% 5 year fix, 65% LTV. Pretty happy with that. However, because the whole rental amount is taxed at 40%, I’ll be losing money every month. Rents have to keep going up if landlords with mortgages are to survive. Thousands of landlords quitting so rental property is like gold dust.

@ratsliveonnoevilstar1 6 ай бұрын

Thanks to George Osbourne

@ratsliveonnoevilstar1 6 ай бұрын

What can you do. Sell it and buy another or transfer into LTD company

@DC-uf6ve 6 ай бұрын

Yeah I'm in a similar position but there's a ceiling to how far rents can go and that's down to local economy and cash buyers in the area. I'm in a quandary as to what to do next, will probably ride it out.

@ratsliveonnoevilstar1 6 ай бұрын

@@DC-uf6ve agree. It’s the same with interest rates. The economy is crashing hard in the UK. I think we will see rates dropping soon.

@Solihul886 6 ай бұрын

@@DC-uf6veI thought that but then I came to think that the market is slow because of rates right now. As soon as those rates become affordable, the demand will overflow and go back into bidding wars stage. On top of that, the properties will get taken off reduced in an attempt to maximise profit.

@robertwest8300 6 ай бұрын

With regard house prices, developers simply can’t make money building houses at the moment…..so they’re not building. You’re looking at £2,500 sq m to build, so I don’t see how houses can drop below the cost to build them. I source plots for developers and none of my developers have been buying for the last 12-18 months. There’s simply no money in it at the moment. The housing shortage is set to accelerate and that will stop any drop in house prices.

@Solihul886 6 ай бұрын

My area still has new developments and next phases coming up

@propertyaccelerator 6 ай бұрын

I’ve friends who are smaller developers they plan to take the year off. Fortunately they have cash to do that some can’t

@andrewbarton3040 6 ай бұрын

House Prices only started doubling every 10 years since the 1970s go back to Victoria era and house prices were more expensive and fell constantly for 70 years from 1845 to 1915 😊😊😊

@barmy_irooni 6 ай бұрын

Yes i remember those years SO well how hard it was to get onto the property ladder!!! lol

@ratsliveonnoevilstar1 6 ай бұрын

It’s a complex picture. Supply, demand and saturated prices in the south east vs income and average salaries. Houses worth 100k will have a better chance at doubling than a 2 bed flat that’s already 400k..

@Solihul886 6 ай бұрын

Totally different economical standpoint that affected supply and demand ratio however

@propertyaccelerator 6 ай бұрын

I would imagine the wars wiped out a lot of growth. I don’t just mean the world wars

@stevecrossley7273 3 ай бұрын

House price inflation is primarily linked to currency creation which has sky rocketed since 1971 when currencies were detached from the gold standard.

@barmy_irooni 6 ай бұрын

I’ve “hit” the like botton & “smashed” the 🔔 one too…you can put your dummy back in now! lol I can’t wait for your xams/new year day videos……feel like a little kid at Xmas ALL over again! lol Ps UTMO! 💙🦉💙

@propertyaccelerator 6 ай бұрын

My dummy is well and truly back in. Haha thanks for the support

@jazeroth322 6 ай бұрын

Very useful info. Ty

@propertyaccelerator 6 ай бұрын

🙏

@williamleach4018 6 ай бұрын

It's not that the value of a house goes up by much over time. It's the denominator (£) goes down that makes it look as if house prices goes up.

@propertyaccelerator 6 ай бұрын

True but your debt is becoming less of a burden due to inflation

@otey7326 5 ай бұрын

I couldn't imagine putting 30k down on a property then now owning it 25 years later. Repayment the way to go definitely. Rather build wealth than have a slighty better cashflow

@propertyaccelerator 5 ай бұрын

🙌

@manishg214 6 ай бұрын

An excellent video. But with an interest only mortgage, does the interest rate not also chance? Or can that be fixed too?

@propertyaccelerator 6 ай бұрын

You fix for 2,3 or 5 years then change lender after that same as repayment mortgage

@steamhammer2k 6 ай бұрын

My grand parents and my parents purchased their houses with out needing a mortgage. It will not be long until you need a mortgage for your car. I still cannot get my head around the fact that some people think base rates are high, they are very competitive compared to the past i have experienced. It`s the house prices that are the problem they are far too high and need to drop to make things affordable

@propertyaccelerator 6 ай бұрын

The problem is not how much the mortgage is its more the speed of the increase in rates.

@bartomiejsaweczko6152 4 ай бұрын

How come in 10years prices double? I buy 2bed flat in Birmingham 14years ago for 80k now asking prices on same estate for 2bed flats are 120-130k. So it's 40-50k more . No double!

@propertyaccelerator 4 ай бұрын

Its an average for the UK, so maybe where you are looking in Birmingham that wont happen. Look for areas where it does it that is your priority.

@MarkLikesCoffee860 3 ай бұрын

@@propertyaccelerator I paid £103k for my property in 2012 then sold it in 2013 for £215K. That's more than doubled in 10 years. Some are less, some are more. That's how an average works.

@vinaya.k.a7149 Ай бұрын

Amazing video, is it also true you can mark the interest on the interest only mortgage off as an expense when doing your tax return ?

@propertyaccelerator Ай бұрын

You can if you run in a company, you cannot if in your personal name.

@P8REN 5 ай бұрын

Do you still have to pay the balloon payment at the end of the term for the capital on an interest only mortgage? Someone told me they had to save like £20k but this was around 15 years ago so wasn’t sure if anything has changed

@propertyaccelerator 5 ай бұрын

Yes you will still owe 100% of what you borrowed. So if you have a £100k mortgage you owe £100k at the end.

@EightAcreLake 6 ай бұрын

I am in the process of buying a small buy to let. The hoops I am having to jump through to prove affordability is insane given I own three properties outright. Question, how do you prove affordability when you have 30 or 40 properties with interest only mortgages on them? How do you manage to get those mortgages?

@propertyaccelerator 6 ай бұрын

Ive never really had any problems, if you declare at least £25,000 in income. They are more concerned about the property making money ie rent is high enough for mortgage payments. Id maybe speak to another broker.

@EightAcreLake 6 ай бұрын

@@propertyaccelerator Thank you 😊

@stuartnicklin4101 4 ай бұрын

Prices double in 10 yrs ? Where ,how ?

@brunob97 4 ай бұрын

From what i can understand, as a landlord an interest only mortgage is better as you will make more profit on a monthly basis ?

@propertyaccelerator 4 ай бұрын

Correct

@brunob97 4 ай бұрын

@@propertyacceleratorbut it also seems like it will take forever to pay off the house as you’re only paying the interest ? How would you go about paying it off asap ?

@deboraleggerini5729 6 ай бұрын

@propertyaccelerator 6 ай бұрын

Hey 👋

@Divided-Kingdom 6 ай бұрын

Property tossers have had it too good for too long, bout time they hit a few setbacks.

@DC-uf6ve 6 ай бұрын

Be careful or I'll kick you out of my property, ya worm.

@Divided-Kingdom 6 ай бұрын

@@DC-uf6ve aww there there, dont get upset.

@propertyaccelerator 6 ай бұрын

😂

@propertyaccelerator 6 ай бұрын

Hey if you feel the council are better landlords good luck

@jojackson2818 6 ай бұрын

Corporate builders pay on average 25 to 30000 pound for the plot of land and 50 grand for the build of the house. And the other thing mortgages should be made illegal in the way that they are sold. Why am I being sold an unspecified amount of debt? Who gets signed up to? I m just gonna make the payments up as I go along Because that is what a mortgage is. Charging you 300% interest.

@propertyaccelerator 6 ай бұрын

👍