svag Posted March 21, 2006 Share Posted March 21, 2006 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 Quote Link to comment Share on other sites More sharing options...
MrShed Posted March 21, 2006 Share Posted March 21, 2006 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. Quote Link to comment Share on other sites More sharing options...
Guest ex alexander hall employee Posted March 22, 2006 Share Posted March 22, 2006 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. Quote Link to comment Share on other sites More sharing options...
BTL_MAKING_MONEY Posted April 6, 2006 Share Posted April 6, 2006 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). Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.