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Landlord Remortgaging - Should I Be Worried?

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Just been told landlord will be remortgaging and I have done a quick calculation that an interest only mortgage would be £20 less than I am paying in rent if it was for the full amount, should I be worried or is this quite common?

I think the property has no current mortgage and as they own other properties I am guessing that they are wanting to buy another, do people normally get remortgaged to the full amount the property is worth?

Thanks

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There is no "normal" remortgage amount, it can range really from virtually nothing to the entire house value, and even over. I wouldn't think you would have too much to worry about. Worst case scenerio IMO is that next time they can, the landlord may increase your rent. But, a lot of landlords aren't too bothered about the rental compared to the mortgage, as the real gain is the capital gain from the increase in value of the property over time.

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Guest ex alexander hall employee

Just been told landlord will be remortgaging and I have done a quick calculation that an interest only mortgage would be £20 less than I am paying in rent if it was for the full amount, should I be worried or is this quite common?

I think the property has no current mortgage and as they own other properties I am guessing that they are wanting to buy another, do people normally get remortgaged to the full amount the property is worth?

Thanks

This is pretty common - he will get tax relief on the interest only mortgage payments - therefore will show a tax loss on your property which can off-set other gains. You aren't costing him that £20 a month.

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This is pretty common - he will get tax relief on the interest only mortgage payments - therefore will show a tax loss on your property which can off-set other gains. You aren't costing him that £20 a month.

The amount they can claim on interest relief is based on the value of the property when it was purchased plus any capitalised costs - see thread on landlordzone.co.uk forum (tax area).

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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