INTEREST ONLY or REPAYMENT Mortgage? | Buy to let and Property Investing 101

Рет қаралды 184,995

Күн бұрын

You've buy a buy to let... What mortgage should you get an interest only? or a Repayment mortgage? In todays video I'm telling YOU what the difference is between an interest only mortgage and a repayment mortgage and which one you need to get if your a property investor buy a buy to let property.
The video has been requested by loads of you and I do read your comments and I want to help as many people as I can with this so if you need to know about interest only mortgages then this video is for YOU!
If you want me to answer any questions regarding to property investing or business or anything then please let me know in the comments below.
Want to learn more about property and how to get into the property industry than make sure you subscribe to the Jamie York Channel to not miss the latest videos about property, entrepreneurship, and business.
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Пікірлер: 529

@KalpeshPatel-tq5jl 2 жыл бұрын

Thanks for sharing your knowledge Jamie. I’m an experienced landlord also with a significant portfolio. I started with IO mortgages but have now changed to repayment mortgage as part of my 5-10 year strategy. It’s important to factor in the tax changes to how profit is calculated and think about ‘yield on debt’. There comes a point where even a small hike in interest rates is enough to topple over a property portfolio. So if your highly leveraged go ahead and calculate the interest rate it would take to kill your cash flow - you may decide it’s better to repay debt and consolidate your portfolio. I hope this makes sense.

@sniperjoe5351 Жыл бұрын

100%

@assassinskillz123 Жыл бұрын

But how will you pay the tax with repayment because the mortgage isn’t expensable

@pottersmiles7238 11 ай бұрын

@@assassinskillz123 Ltd company

@ek8849 2 жыл бұрын

Fab video mate and entertaining. Dave is having a blast lol

@raymanbristol4347 3 жыл бұрын

Love your videos mate. You explain things so simply. When I become a property tycoon, it’ll be partly thanks to you 🙌🏾

@JamieYork 3 жыл бұрын

Great to hear!

@amxltd8718 3 жыл бұрын

Exactly the video I was after! Keep them coming 👍👍

@JamieYork 3 жыл бұрын

Thanks! Glad you got some value out of it!

@PatrickT 3 жыл бұрын

Love the no frills, straight to the point explanation.

@JamieYork 3 жыл бұрын

You're welcome!

@luxs-uw7ry 3 жыл бұрын

Came across you channel and straight forward easily explained. Liked and subscribed.

@JamieYork 3 жыл бұрын

Thanks so much and welcome to the channel!

@Rye82 3 жыл бұрын

Great video, the first time I’ve seen this channel. Also on the interest only, another plus point is inflation. You’ll still owe £100k in 25 years time but £100k in the year 2046 could be the average salary. Like a loaf of bread may be £5

@JamieYork 3 жыл бұрын

Spot on mate. Forgot that one didn’t I!

@Fayruzshula 2 жыл бұрын

My first investment with Mrs Jane gave me profit of over $24,000 us dollars and ever since then she has never failed to deliver and I can even say she's the most sincere broker I have known

@Rye82 2 жыл бұрын

@@Fayruzshula go spam somewhere else

@Fayruzshula 2 жыл бұрын

Most people remain poor only because friends and relatives discouraged and advise them against investing and trading forex while the wise ones kept investing and growing higher financially

@jasminejoseph2960 Жыл бұрын

The bank will fix only for a 2 or 5 year and you have to change your interest rates according to them I guess

@RazorsMcLarenMp23 2 жыл бұрын

Jamie, your knowledge is insane. I haven’t yet bought my first buy to let property or “let to buy to let”. But you have provided me with several eureka moments. I am building my network of people and knowledge. I’m in a good position for a successful run. Thank you so much for your advice and explanations. Fingers crossed I can pack a punch! Thanks dude!!

@JamieYork 2 жыл бұрын

You can do it! I wish you good luck Joshua!!!

@oreoluwaomolola4091 Жыл бұрын

Amazing video, this just gave me the clarity I needed

@chrislee1701 3 жыл бұрын

Very clear, very concise and held my attention throughout. I've subscribed.

@JamieYork 3 жыл бұрын

Awesome, thank you!

@nikhilpadhiar2273 3 жыл бұрын

Thanks mate, really good video! First time I've watched you, summed it up really well. I'll be watching your Buy to Let Basics video next 😊. Youve got my subscription!

@JamieYork 3 жыл бұрын

Thanks Dude!

@edisonmoreno7098 2 жыл бұрын

love your videos! really well explained and you can tell it gets you excited.

@JamieYork 2 жыл бұрын

Glad you enjoy it!

@bslomof-1901 3 жыл бұрын

Another awesome, clearly explained, valuable video! Appreciate' it, Jamie!

@JamieYork 3 жыл бұрын

My pleasure!

@nicklinj95 3 жыл бұрын

brilliant explanations from all the videos I've seen so far, keep it up

@JamieYork 3 жыл бұрын

Thanks James, glad you’ve got value

@nathanheaney8570 Жыл бұрын

As something that I have been really thinking of doing in the future, your presentation skills and knowledge have been superb in helping me. Made it so much easier to comprehend. Thank you

@JamieYork Жыл бұрын

Thanks so much :)

@ulaland Жыл бұрын

This video is amazing ! Thank you so much ! We are just starting in the property business so this was very helpful !

@damianboland1098 3 жыл бұрын

Excellent video. I look forward to watching more. Liked and subscribed.

@JamieYork 3 жыл бұрын

Thank you very much!

@smouty2099 3 жыл бұрын

Thanks Jamie this was exactly what I was after, really appreciate it! Also as ever your videos are packed full of sensible and easy to follow information 👍🏻

@JamieYork 3 жыл бұрын

Glad you enjoy it! if you want any other videos talking about anything then let me know!

@Dan-kr2hg 3 жыл бұрын

Well done, another brilliant one I’m learning so much from listening to you.

@JamieYork 3 жыл бұрын

Great to hear!

@florencekanaiya3027 4 ай бұрын

Thank you very much for your easy to understand… very inspirational video

@MrIntercoolers 3 жыл бұрын

Thanks Jamie - very interesting and a great help - cheers

@JamieYork 3 жыл бұрын

No worries at all! Glad you got some value!

@javedakhtar7854 3 жыл бұрын

Brilliant session, for the first time I have changed my opinion away from repayment mortgages

@JamieYork 3 жыл бұрын

Then my work here is done!

@hanifebrahim9285 3 жыл бұрын

My very first time hearing you bro,you’re bloody excellent & easy to understand

@JamieYork 3 жыл бұрын

I appreciate that!

@thehourchannel9190 3 жыл бұрын

Subscribed and liked! Thanks for the info!!

@JamieYork 3 жыл бұрын

Awesome, thank you!

@chiragdesai676 2 жыл бұрын

Great vedio..Nice explanation..Appreciate your work Jamie..I am owning 1 BTL in London.So this vedio very helpful for me. Thanks.

@katewood4302 3 жыл бұрын

Thank you for sharing your knowledge, really insightful

@JamieYork 3 жыл бұрын

Glad it was helpful!

@Marcus-ec1kx 2 жыл бұрын

crap this was valuable information! honestly i cant thank you enough for sharing this

@brookeparker9615 3 жыл бұрын

Brilliant-I have always had the mentality of ‘got to pay off my mortgage’ (on my house that I live in-interested to hear your opinions on whether you would choose a different mortgage on a house that you’re living in?). But this video has really enlightened me!!

@JamieYork 3 жыл бұрын

Fantastic!

@patrickandrews1431 3 жыл бұрын

Finally someone on KZfaq that speaks facts and uses graphs! Cheers Jamie

@JamieYork 3 жыл бұрын

I LOVE a graph

@lorraine3424 2 жыл бұрын

Investment in Bitcoin has been the best decision and made this year, I wish I know about it earlier that now I would have been a millionaire buy now, but it's better late than never right

@louismapley647 3 жыл бұрын

Great video made something boring sound exciting. Which made it easy for me to subscribe 🤙🏻

@JamieYork 3 жыл бұрын

How dare you! It's not boring 😉 Haha, glad you got some value!

@AdrianMidgey1 2 жыл бұрын

Bright guy and great content! I can relate to alot (not just this video) of what he's saying - I'm 1 property into my journey so far and there are some really pertinent points raised across all your content - Keep up the great work 👍🏻

@JamieYork 2 жыл бұрын

Thanks for sharing!

@D218723Y 2 жыл бұрын

That’s not correct. The scenario is yearly calculated mortgage which is from the 90’s. Nowadays interest is calculated daily so that line is more straight

@francdec4 Жыл бұрын

Oh wow....one of the best you are truly. I have learnt so much from you. Found your channel today and have being watching many of your very amazing lectures. Thank you brother for sharing. I am about venturing into real estate investment as I will like to retire very early in Medicine.

@JamieYork Жыл бұрын

Welcome aboard! Thankyou glad the videos are helping you! Can't wait to hear more about your venture!!

@dannyward8450 2 жыл бұрын

I have to say you are brilliant!

@eyazdani4537 2 жыл бұрын

Great video and content. The major advantage of repayment mortgages is the lower interest compare to BTL mortgage interest.

@JamieYork 2 жыл бұрын

This is incorrect because they're different mortgages, 1, being a residential mortgage (For you to live in) and 2, being a Buy-to-let mortgage. You can get a repayment mortgage for both :)

@Zel0978 3 жыл бұрын

You clearly know your stuff and for that I admire you. I went repayment mortgage and overpay on the basis that eventually the property will be 100% mine, but moreover...I just like to keep things simple. :)

@JamieYork 3 жыл бұрын

Great job!

@SnakePliskin762 2 жыл бұрын

Exactly the same as myself and quite a few other landlords have done i know.

@taipizzalord4463 Жыл бұрын

2:20 'You won't be'. Your damn right, Its more than that!

@JamieYork Жыл бұрын

👀 👀

@imasarevans725 Жыл бұрын

Love it!👍🙏 you are funny and clear.. and I like a bit of humor on your video.. as numbers can be a bit boring.. Thank you for your help ⚘❤

@JamieYork Жыл бұрын

Glad you enjoyed!

@jimpeters04455 Жыл бұрын

Really well explained! Thanks so much

@JamieYork Жыл бұрын

You're very welcome!

@nardsmath3511 3 жыл бұрын

Going to get the ball rolling, going to view some properties this week!

@JamieYork 3 жыл бұрын

Have fun!

@raaziabanks2552 3 жыл бұрын

How is that going in the current market? Please share your experience.

@bellaw75 3 жыл бұрын

Me too-lets link up

@patlas17 2 ай бұрын

great information, thank you

@Niracka1 3 жыл бұрын

Fantastic video! Thanks!

@JamieYork 3 жыл бұрын

My pleasure!

@pelletonpellet 3 жыл бұрын

Loving the content Jamie. Subscribed! Pure information and I watched happily without you trying to sell me a property course. 😅 I'd be very greatful if you'd do a video on the differences between buying a property as an individual and buying as a LTD company. Pros and cons of each etc. Having done a quick bit of research individual mortgages appear to be considerably cheaper, allowing for more monthly cashflow. Love to know your thoughts on which route to take. Cheers. 👍🏻

@JamieYork 3 жыл бұрын

Awesome! Thank you!

@dmitryzenkov6396 3 жыл бұрын

Ok thanks for this mate. Answers my query from another vid )

@JamieYork 3 жыл бұрын

Glad I could help!

@The_baron_of_frankby Жыл бұрын

Clear concise advise, thank you

@JamieYork Жыл бұрын

Glad it was helpful!

@7jassal 3 жыл бұрын

Wonderfully explained 👏👏👍👍thanks Jamie

@JamieYork 3 жыл бұрын

Glad you enjoyed it!

@risenshine2783 2 жыл бұрын

Thanks for explaining it

@peteturnervideography 3 жыл бұрын

Great video as per Jamie. I wondered if you would do a video on the process of refurbishing a property. How you can go about predicting the cost, how to design it, how to manage it, snagging issues that come up, etc

@JamieYork 3 жыл бұрын

Sure man, I can get that done for you :)

@peteturnervideography 3 жыл бұрын

@@JamieYork Top man, appreciate your authentic value giving, it's very helpful indeed

@maryanabdi5821 3 жыл бұрын

Excellent explanation thank you so much

@JamieYork 3 жыл бұрын

Glad you liked it

@danielfox5887 2 жыл бұрын

Great video! I’m 23 and look to get onto the property ladder in the new future, hence being new to this channel. Do you have a video or could you provide advice on choosing a location for your buy-to-let property I.e. locations which are easier to attract and retain tenants?

@bilalhussain7297 3 жыл бұрын

Excellent video Jamie! Your goals and ambitions are almost identical to myself! I too want to grow to 1,000 properties one day and focus on philanthropy, and Buy to Lets is CASHFLOW first, equity second 😁

@JamieYork 3 жыл бұрын

100% :)

@mixerman8 2 жыл бұрын

Great prognosis Jamie, first one of your vids I’ve seen. Got 3 buy to let’s now remortgaged them in interest only last year, all the profits I used to invest in my stocks shares isa which springboarded it right up. Setting up a ltd company shortly. Keeping these on interest only in my name for 5 years to help grow the ltd which will consist of HMO’s etc. Those 3 will gradually get paid off then as a kind of security for me. But the ltd company gonna leverage it to heck with these rates being so good still, interest only all the way. Reinvest in more property and stocks shares. Can’t wait mate, got an illness which is MS and I’m 42 now, so gonna be hitting it hard for next 13 years and retire at 55 and finally take it easy. I’ll settle for 5 HMO’s, 5 rent to buys and half a dozen flats. Should be enough for a pension lol. Hope you get to your 1000 that’s a big goal 👍👌

@risenshine2783 2 жыл бұрын

Good plan wish I had been so savvy with my btl s I went for repayment mortgages! Hope you dont get bad ms.take care

@mixerman8 2 жыл бұрын

@@risenshine2783 thanks, its a strange illness been good for 6 years. Just had a big relapse attacked optical nerve coming round taking a while. So glad I've invested been off work since September, but so lucky not to be financially worried. Repayment not a bad thing really, just there's so many different business models you can create. At least you've invested which a lot of people are afraid of, so 10 steps ahead already.

@LaraJoannaJarvis 2 жыл бұрын

Great video, thanks for the explanation!

@JamieYork 2 жыл бұрын

Glad it was helpful!

@royparker1844 3 жыл бұрын

Super clear explanation Jamie and love the graphics?! Have passed to my son to start his property journey. Thank you.

@JamieYork 3 жыл бұрын

Very welcome!

@05ryan123 2 жыл бұрын

Brilliant video thank you

@JamieYork 2 жыл бұрын

Glad you enjoyed it

@memkay1291 2 жыл бұрын

Thanks Jamie, great videos. I've learned a lot from you because you training is more realistic. I will like to be mentored by you

@JamieYork 2 жыл бұрын

Great to hear!

@trevorsmith8487 Жыл бұрын

So much better than the 'look how flash I am cos I'm a proper investor' vids from soooo many others, well done Jamie

@JamieYork Жыл бұрын

Glad you enjoyed it, thanks!

@gmckayak 2 жыл бұрын

Great informative video. I'm interested to know if I can use the equity I have in my house? Was thinking of remortgaging to get those funds out of my property?

@prakhamtierney2783 2 жыл бұрын

Very good expained and usefulness.👍

@JamieYork 2 жыл бұрын

Glad you think so!

@BOSHDUB 3 жыл бұрын

Brilliant and got a new subscriber

@JamieYork 3 жыл бұрын

Welcome aboard!

@parkgate-ub1ey 2 жыл бұрын

This helps as am new to this and NEED to learn more. I want to start off buying to let and need guidance.

@dahirukabiru672 2 жыл бұрын

Mrs Jane has been managing my trade for months and I keep making profit every week, made $9,130 last week

@kaustavpal6587 3 жыл бұрын

Brilliant Video....Keep churning out more such content. Aside, why not share some on Property Tax

@JamieYork 3 жыл бұрын

Will do soon

@buytolet-landlords 2 жыл бұрын

Good video. Admire your work.

@AN-vt3kl 3 жыл бұрын

Makes absolute sense!!!

@JamieYork 3 жыл бұрын

Good!

@TheNomadicTrader 2 жыл бұрын

Had me until the refinancing bit at the end, I'll rewatch the video and research refinancing. Thanks for sharing.

@JamieYork 2 жыл бұрын

Watch my video about refinancing! Should help iron it out!

@boombeachfubar946 3 жыл бұрын

The wheee hoooo after the extra 50 quid year 2 mortgage repayment got you your like. Was laughing. Good content too of course, lol

@JamieYork 3 жыл бұрын

Haha, glad you like it 😂

@MrMaxm144 3 жыл бұрын

Crack me up man

@williamness6458 2 жыл бұрын

What a great video!!!

@JamieYork 2 жыл бұрын

Thank you!!

@lisabygrave6607 3 жыл бұрын

Love it!!!!

@JamieYork 3 жыл бұрын

Glad you like it!

@nabisayed84 3 жыл бұрын

Great content. Wow

@doolittlefirstking6388 Жыл бұрын

Thank you!!!!!

@mollyt4639 2 жыл бұрын

I want to pay off some of my BTL mortgages with interest rates going up, plus the mortgage fees for limited company are in the region of £2k. It will ultimately help with cash flow with the coming hike in interest rates …

@victoriaajayi8267 3 жыл бұрын

WELL EXPLAINED

@JamieYork 3 жыл бұрын

THANK YOU

@ef7480 3 жыл бұрын

Can't wait for you to explain how the actual 'loan' is created at the bank. Useful vid though👍

@JamieYork 3 жыл бұрын

Glad you liked it!

@rre-group7521 3 жыл бұрын

Out of thin air

@jamesford8271 3 жыл бұрын

About to complete on our 2nd property, converting our first to a BTL. These videos have been so helpful to understand the whole process as a newbie. Cheers

@JamieYork 3 жыл бұрын

Great to hear!

@nataliequansah 2 жыл бұрын

I never understood the point of interest only ( I hadn’t really researched into it properly) but now I totally get it ! Definitely an advantage to it! Thank you sharing!🙂👌

@JamieYork 2 жыл бұрын

Glad it was helpful!

@elliotsmith9623 Жыл бұрын

Really interesting Jamie - thanks! Do these principles still apply in the UK in 2023, what with the rise in interest rates and the Govt policies which are essentially causing so many landlords to sell up en-masse?

@mollyt4639 2 жыл бұрын

In Scotland & NI there are very few areas where house prices are doubling every 10 years - this is a London & SE phenomenon!

@JamieYork 2 жыл бұрын

And almost all of England 🏴󠁧󠁢󠁥󠁮󠁧󠁿 💪

@jforalova 3 жыл бұрын

Great explanation! I am interested to hear more about your charity activities - will you share here or perhaps anywhere else? Thank you!

@JamieYork 3 жыл бұрын

Absolutely! I sometimes mention them on my Instagram @jamieyorkaspire

@wepaboi 2 ай бұрын

You're the man

@JamieYork 2 ай бұрын

Appreciate that buddy

@sambaker5433 3 жыл бұрын

Great video. Do you see all property types increasing by that amount over 10 year period? Or would this vary for house vs apartment etc. Do you have any good data sources for historical property prices in UK?

@JamieYork 3 жыл бұрын

It will vary From types of property to their geographical location :)

@jamesyork8524 3 жыл бұрын

Great explanation. It’s good how you use 5% as a stress test precautionary interest rate, but I feel the house price doubling in value every decade is maybe the other way, a little optimistic, 50% value increase could be used and still be attractive.

@JamieYork 3 жыл бұрын

Thanks! Yeah just for illustrative purposes although it is the long term average. I prefer 5% a year as a conservative average in my area. Glad you’re enjoying the content 😊

@kierannoor1154 2 жыл бұрын

Hi Jamie. Just a quick one, I’m a first time buyer, can i get interest only on a residential mortgage, refinance after a refurb say 1 year in and use this money for an investment property. Thanks enjoying the videos.

@righteouswarrior7621 3 жыл бұрын

"Another one"!!! Smash👍👍👍

@JamieYork 3 жыл бұрын

Thanks ;)

@vijayaditya2003 Жыл бұрын

Hi Jamie , in the current scenario of sky rocketing interests is it still worth taking interest only or interest + Principle repayment mortgage.

@timoschneider7030 Жыл бұрын

Simple way of explaining this strategy is you are borrowing money today when that money is valuable, then paying it back later when it's not worth as much.

@JamieYork Жыл бұрын

Never heard it said like that, but spot on!

@jacek22235 2 жыл бұрын

Can you/do you remortgage on buy to let properties? If so is it worth doing? Thanks :)

@miss.frankievanderbyl 3 жыл бұрын

Hi Jamie I like your videos could you do one on having your own property portfolio vs having a ltd company

@JamieYork 3 жыл бұрын

Great shout, I think there's one already done on this. Take a look and If not, I'll get one done for you mate

@Brandon_Michaels Жыл бұрын

Hi Jamie, great video, thanks! I live in a developing country where mortgage interest is 10.75%. By comparison in the repayment plan I would be paying about 11.2% (interest + capital). Does it still make sense to get an interest only deal? Considering the debt will likely be eroded by the 7% inflation eventually and I (or a LLC) can one day own the property

@MK-wv8dt 3 жыл бұрын

Thanks Jamie your idiot proof for people like me who are just starting out

@JamieYork 3 жыл бұрын

Haha, it’s the way I explain it to myself. I’m very simple and like keeping things as straight forward

@exriser4173 3 жыл бұрын

Great video Jamie, really like your channel. Warning to some though, I have several properties in good areas and NONE have doubled in value over 10 years, not even close. I know the graph is designed as a visualisation but it’s an ideal world situation.

@JamieYork 3 жыл бұрын

Exactly that, very illustrative, but it is also the long term average to be aware of. I like to factor in around 5% yearly growth in my area :)

@johnstonlee 2 жыл бұрын

They double every 10 to 20 years. I have a two bed in Essex 150k 7 years ago now 250k. The market for two beds under 300k is bonkers.

@lewiswilliams5967 2 жыл бұрын

I live abroad and cash flow is not an issue at all, however my pension outlook is poor. I went repayment for my first property so that I have a mortgage free property in the UK at retirement age. I do not own any other property. If I get another BTL in addition, it would likely be interest only.

@teegah17 3 жыл бұрын

👏👏👏👏👏👏👏👏 Excellent video

@JamieYork 3 жыл бұрын

Thanks Sean, glad you got some value :)

@richarddordoye7300 Жыл бұрын

Could you share some ideas on let to buy, please

@theodoreroosevelt7224 6 ай бұрын

The thing with exponential growth of the property market is it'll happen to the properties you want to buy as well as those you want to own. So while yes, your house has doubled in value you can still only buy a house of relative worth.

@MrHkti 2 жыл бұрын

Legend ❤️🙏

@leerammer2342 2 жыл бұрын

Hi Jamie I have some questions I hope you can help me with. Me and a friend of mine want to get into property, buying properties and renting them out as student accommodation, would you say this is a good idea and how much do you suggest we would need to start doing this. Also how does it work with getting multiple mortgages at once, does it go off of how much profit you make from your other property? Hope to hear back from you, Liam

@graziellamintrone5343 3 жыл бұрын

What an informative and clear video! Great as Always! My new buy-to-let the interest only lender came back with a negative report... because the property needs decoration. I’m leaving a new lender go and valuate it for a second report. What’s yr opinion?

@JamieYork 3 жыл бұрын

Thanks so much, really glad you're getting value! Yeah I'd definitely get a different lender, although I'd use it as a reason to renegotiate dependant on what works are needed

@graziellamintrone5343 3 жыл бұрын

@@JamieYork travelling now to Manchester and Middlesbrough to see some properties for investor and that one for myself. I’ll let you know how it goes.

@sulagheorghe1327 2 жыл бұрын

Great video how do you plan to reach 50% equity?

@justsmile3379 3 жыл бұрын

i just like that smart screen, could you please let me know the name of it? Thank you

@JamieYork 3 жыл бұрын

Haha, glad you like it! Samsung Flip 2

@Andersonramos609 2 жыл бұрын

Hi Jamie. I am loving and learning a lot through your videos. I am 40 years old just bough my second BTL. What the best advice for me in regard my age ?

@JamieYork 2 жыл бұрын

40 is still young