12:39 PM, 24th November 2013, About 9 years ago 6
VIRGIN investor needs help (male sorry lol) – 6 questions incl – Always get new fixed BTL mortgages? And if so for 1,2,or 5 years? Always interest only? And other VERY important questions – HELP!
I am new to doing this BTL thingie – I am now adding to my one BTL property in the UK with two more in the UK (and one off plan in UK – and 4 in South Africa which are best forgotten. This is a 10-20 yr plan I guess
I have 6 very important questions for you experienced seasoned investors out there:
1 – I have been given options for 75% LTV mortgages 1,2, and 5 yr fixed periods.
Should I fix the mortgages? and if so for 5 yrs? My concern is as interest rates are likely to go up in the next year or two at least I’ll know what my monthly outgoings will be. BUT I couldn’t remortgage them to get some of the equity in them to use towards other property during the fixed period without paying early redemption
2 – What is the secret to releasing equity from existing BTL’s then using that money to buy more BTLs? How long do you expert investors typically get mortgages for – 1yr? Do you not get worried about mortgaging the properties to their maximum and if interest rates then go up?
3 – Do you always try get the shortest mortgage possible in order to then raise equity as soon as possible to reinvest in new BTL’s?
4 – Do you always get interest only mortgages?
5 – Do your then somehow pay lump sums off annually which is more tax efficient? Or let them run on interest only until selling them?
6 – Do you buy off-plan? Is it okay to do so if it is a good development? Any major no no’s for doing so?
And any other investment advice principles of building a successful portfolio would be very very very much appreciated before I make a possible BIG mistake by choosing the wrong mortgage etc
THANK you in advance for helping a newbie.