Copy article

Landlords paying down mortgage debt

Journalist: Melissa Lawford, The Telegraph

ended 27. October 2023

Are you seeing landlords paying down their debt on buy-to-let mortgages so that they reduce the size of their interest bills? How common is this becoming? What are the biggest payments you have seen investors make? How much interest are they saving? Is this a growing trend?

3 responses from the Newspage community

Copy all

Copy

Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
We haven’t seen landlords paying down their balances, just increasing rents. The majority of landlords mortgages are on interest only so still covered by the rent. We have seen more and more new rental purchases being done through limited companies to be able to be more tax efficient.
Copy

Editor
Darryl Dhoffer
Founder at The Mortgage Geezer
My clients with one or maybe two Buy-To-Let properties, are not looking to pay off any mortgage balances, and are either selling and exiting the market, or hiking up rents, to help pay for higher interest rates - none that I have spoken to over the past 12 months have the savings to reduce their mortgage balances, and instead are having to dip into their savings (for those fortunate) to keep their roofs over their heads, due to the cost of living crisis and higher mortgage interest rates on their home mortgage.
Copy

Editor
Jack Tutton
Director at SJ Mortgages
This is something that we are seeing, more so from customers with property portfolios. We have seen one landlord considering making a six-figure reduction to a mortgage to reduce their interest liability, they would be saving a significant amount of interest given the interest rate that their mortgage was moving on to. Another option that landlords are considering is restructuring their portfolio to bring the loan to value of the portfolio to an even level rather than being geared highly on particular properties and lower on others.