Shelter’s Income and expenditure figures highlighted13:57 PM, 4th February 2019
About 2 weeks ago 35
I have taken out an interest only BTL mortgage with Paragon with a 20% deposit for a 25 years term and I noticed that the rules says that paragon can ask for the mortgage to be adjusted at whatever time suits them (after the first 2 years) so for example they can switch the mortgage to a repayment or even call the whole mortgage in when they wish.
I signed and agreed to these terms because I am not worried about this because I have enough cash in reserve to pay the mortgage off right now if I wanted but how do more experienced landlords get round this risk if they wish to expand?
Are there BTL products where the lender does not have the right to change the terms in the same way Paragon does?
Could be quite scary having a handful of mortgages with Paragon should they decide to change the term?
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