Living back with my mother…
I’m thinking of entertaining the idea of getting my first BTL.
I’m mortgage free at my present home so by moving in with mother and renting my property this would give me a small income of around £450 / £475 a month.
I want to get a 3 bedroom property and rent 2 of rooms out to different people, and return back to my Moms to acquire a good cash flow situation and make over payments to the BTL by combing the rents from the 2 rooms, my income, and the rent from my mortgage free home totalling monthly payments around £3k.
Question is; if living for a long period with my mother doesn’t work out, can I move into the 3rd bedroom at any point?
Please advise…
Thanks
Mark Doxford
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Member Since January 2011 - Comments: 12193 - Articles: 1396
7:51 PM, 2nd October 2014, About 12 years ago
Reply to the comment left by “Mark Doxford” at “02/10/2014 – 19:18“:
Hi Mark
These days most lenders allow over-payments of up to 20% of the capital outstanding on the mortgage every year without penalty but do be certain to check with whichever mortgage lender you go with.
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Member Since September 2013 - Comments: 104 - Articles: 3
8:13 PM, 2nd October 2014, About 12 years ago
Reply to the comment left by “Mark Doxford” at “02/10/2014 – 19:18“:
Mark, this should not be a problem with a vast majority of lenders. Check section 10 of your mortgage offer or the mortgage illustration applicable to your mortgage for details. Overpayments of 10% of the outstanding balance at the start of the current year are common, and it doesnt matter if it is interest only or Capital and Interest. If you are outside of any special rate period, the overpayment amounts are unlimited.
Member Since September 2013 - Comments: 104 - Articles: 3
8:19 PM, 2nd October 2014, About 12 years ago
Mark there should be no problem in overpaying with the vast majority of lenders. Check paragraph 10 of your mortgage offer for details. Most lenders will allow an overpayment of 10% per annum during a special rate period. Once your fixed or variable rate has finished there are no limits to the overpayment amount. It does not matter if it is an interest only mortgage or a Capital and Interest mortgsge.