Are INTEREST ONLY MORTGAGES risky? | Property Investment UK
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- Опубликовано: 4 авг 2024
- Are you looking into getting an interest only mortgage? Do you know what an interest only mortgage is? Well this video is going to break down all you need to know about Interest only mortgages, to help you on your way to getting your next interest only mortgage! Let me know in the comments below what you think, and did this video help you understand interest only mortgages more?
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100% agreed on this, all my BTL’s and my home are on interest only.
Please keep them coming Jamie. Love listening to your videos while I'm at work👌👌
Glad you like them! They're coming 3 times a week! Hit that notification bell!
Interest only is probably fine. After 25 years £200,000 will only be able to get you a Fredo Bar and a packet of Space Raiders.
So long as it’s a caramel Fredo
Hahah, love this 😂
Hi Jamie another great video once again. Please make another video about this in much more detail.
You got it!
Hi Jamie it worth trying to take some equity out of my own house to buy another one to rent out? I'm fixed for another year or so but it's something I'm thinking about having watched most of your videos
As always this decision is based on individual circumstances :-).
Often when getting started, you want to maximise cashflow with an interest only mortgage, and then transition to a point when you hit your income goals to start paying down your debt. Why? I get the argument about refinancing tax free, but a keen eye must be kept on mortgage payments vs rent received.
The more you leverage, the more interest you'll be paying and the tighter your margins become when interest rates are on the up like they are now!
Does property become intergenerational wealth if you pass it on leveraged up to the eye-balls?
That said - you've hit the nail on the head that you can accelerate your portfolio growth with interest only mortgages...
Thanks for this, I just asked a question and then spotted your comment. I luckily have enough cash to buy 2 properties outright and rent them, but wasn't sure if I should refinance them and buy 2 more so 4 in total or just take the full rent off both to supplement my wage, I won't be a millionaire but won't have any debt and can live comfortably, mentally that feels great even knowing some debt is good and could potentially earn more using it.
@@GM-kt8rh personally I would refinance them and go again if to increase your return on capital…
But don’t over leverage and make sure you’re making good cashflow after the refinance… 🙏
This is why I prefer to invest in higher density/higher cash flowing types of property to protect those margins 👊
Hi Jamie! Another great video, I have been learning so much from these! When you remortgage every 3 years can you increase the term back to 25 years, therefor not getting closer to having to pay the 75% loan?
You can extend your term but as you get older there are fewer lenders that would lend.
So the debt is only getting less over time though if you don't refinance and pull the money out ? If the interest only mortgage does double at LTV of 75% could some of those rents not cover the new repayments? Leaving some investors who refinanced and lived off/spent or even bought another property with the money in a bad situation? Thanks for all the videos/info, im getting my head around what's best for my position and what risk I'd be happy with.
Good video . The trick is getting an interest only mortgage in the first place , I had always understood that they were tricky to get .
I’ll be looking next year so we will see , I have a 40% deposit so we will see if that helps .
Thanks .
There not difficult to get
I’ve just had to get a big interest only mortgage on my flats to buy more property, it’s a variable aswell which isn’t great but I’m tied in for 3 years so hoping to get a much better deal once I can free myself from it
Do you have to refinance @ 75% LTV or could you do 50% LTV ?
If you only knew about the term "Promissory Note" and "International Bill of Exchange".... It actually doesn't make sense to pay back a mortgage. But you will understand only, if you now about "Creditor in Commerce" and what is really happening behind the scenes after you applied for a mortgage.
Spot on. Smart man!
@@JamieYork Not smart, 2 years of learning, learning, learning...
Please elaborate in lehmans terms? Thanks
@@karstent.66 2 years and many more years to go down this rabbit hole - common law and so on -
You do pay capital gains tax on property, but not on your own home, as long as you have never let it out.
Hi Jamie, great video. I have subscribed. I need help! My interest only mortgage ended 2020 and now the lender wants to know how i am going to pay the £94,000 owed. I inherited the house when my friend passed away from cancer in 2018. What are my options? I am a mortgage virgin. HELP!
Do you know of any good accountant that specialises in property. I am in the process of starting my property adventure?
Interest only mortgages are higher rates than repayment mortgages aren’t they ?
Jamie, if you refinance and take the debt tax free, through your limited company, you still have to pay Dividend tax, right? (after directors loan is repaid, assuming no salary etc)
Only if you give yourself dividends over and above the tax free threshold. If you use the loan as a salary then 0% tax is due
@@andrewfallon2719 think it's only £500 threshold now, or will be soon. Assuming salary elsewhere
Yes it’s ridiculously small now
If i was running for parliment i would put an end to interest only, i would kick the hole money rackateering show into the abbys ,wee just discovered aftsr 28 years, we were only half way through , fortunately my mother now has the means to finish the hole thing. But what a rip off.😠😬
Jamie at the end you saying if inflation 10 % you slashing 20k . So what do you mean? you will increase your rent 10 %. Cause if inflation is 10% it doesnt mean that your property will be worth 220000 if supply will be high and demand low
No what he is saying is that the £200k loan will be the equivalent to £180k as the value of the pound has effectively decreased 10% compared to the previous year.
He forgot to mention this only applies if your salary goes up at the same rate as inflation (10%)
Just so you are aware lendlord doesn't do bridging loans and very small range of mortgages in Northern Ireland and Scotland
I’ve done 4 bridging loans with them in the last year. They defo do them bud
@Jamie York tried to get a bridging loan last week and because they have no lawyers in Northern Ireland they can not loan to me as I am from Northern Ireland
I’m not sure how this video is relevant at the currant circumstances due to Bank of England rate being so high.
@marks137 mortgage going up from 276 to 820, and the rent is sky rocketing, how can tenants afford these prices? I feel bad putting these rents up.
And people wonder how 2008 happened. What happens if housing is a bubble and does burst?
It will also grow and pop. That’s the economy. That’s why you leverage correctly. 2008 happened due to poorly structured CDO and self cert mortgages at over 100% of the purchase price
First 😛
So quick!
I'm on int only with £200k mortgage. I decided to do this after my parents were skint paying their mortgage. When 30 years later it was only an initial £15k. So yeah £200k in 30 years will be the price of a car. Or a bonus. No brainer. As long as the saved capital is invested - never spent
APG
Thanks! Go to www.aspirepropertygroup.co.uk and fill in your details :)
Sound information but your voice is too much.
Too much good or bad? I’m sorry… for my voice?! 😂
I did Jamie's course last year honestly the best thing I did got so much value. I am currently deal packaging for investors in Swindon if anyone wants to have a chat about investing drop me a message and we can arrange a call.