Thursday, 16 April 2015

My Daily Mortgage Interest on my rental property is at an all time low

I have one rental property which I lease out to a couple. I currently have a repayment mortgage as opposed to an interest only mortgage. I know some people with property investments like to collect a large rent payment each month and only pay the interest on their mortgage. Personally I hate having debt so I opted for a repayment mortgage. Fortunately my rent payment covers my mortgage payment, management fee, rates bill, gas certificate and other expenses. I still have a few hundred pounds left over each year too. Normally I use this money for repairs and the upkeep of the property.

I have a 2 year fixed mortgage with Halifax and my mortgage daily interest is dropping every month as the amount owed on the mortgage decreases. This makes me smile. I checked my mortgage account and was able to calculate the daily mortgage interest. Right now my daily interest is £3.42. This comes in at £106 monthly. My interest rate is low at 2.89%, which is reasonable for a buy to let mortgage. I can still remember the days of having a mortgage with 6% interest and paying as much as £9 daily towards mortgage interest.

I used to overpay my mortgage quite regularly but now I am concentrating on saving for a deposit for a new property for my husband and I. I am very happy to let my tenants pay my mortgage for now

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1 comment:

  1. That's a great BTL rate of 2.89%. Mine is 4.5% variable on an interest only mortgage. It's not really worth me switching as the amount I save with a lower interest is cancelled out by the exorbitant mortgage set up fee so I end up losing out.

    My mortgage is only around £75 monthly and I'm slowly paying a bit off the capital each month (I can pay up to 10% per year).

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