Hello everyone and thanks for looking....
I have a buy to let mortgage on interest only, balance is approx £66,000 and interest rate is 4.9% (£270 monthly payment).
The property is not currently tenanted, but when it is next month, I plan to pay the difference between rent payment (£600) and mortgage payment towards my outstanding balance.
I understand that the monthly payment is worked out based in balance and interest rate, so if my balance reduces my compulsory payments reduce. My question is, at what point will the lender work out what my outstanding balance is and how much my repayments will be? Every month? Every year? Or not until the end of the term?
Hope this is clear enough, I look forwards to reading your responses and thank you fit you help.
Nick
I have a buy to let mortgage on interest only, balance is approx £66,000 and interest rate is 4.9% (£270 monthly payment).
The property is not currently tenanted, but when it is next month, I plan to pay the difference between rent payment (£600) and mortgage payment towards my outstanding balance.
I understand that the monthly payment is worked out based in balance and interest rate, so if my balance reduces my compulsory payments reduce. My question is, at what point will the lender work out what my outstanding balance is and how much my repayments will be? Every month? Every year? Or not until the end of the term?
Hope this is clear enough, I look forwards to reading your responses and thank you fit you help.
Nick