Posted on June 12th, 2023

The interest-only mortgage: an old favorite. It's a useful weapon for any investor to have, but it also has the potential to create some anxiety. Constantly crossing my mind is the question "How will I ever pay it off?" But have no fear, fellow real estate fans! Here are some suggestions to help you relax and enjoy the benefits of interest-only loans. We are guaranteed rent property managers who pay for necessary repairs on behalf of landlords who have no intention of selling. Let's talk about your current home. 

One, the value of your homes has increased while the value of your mortgages has not. The great thing is that your mortgage payment won't change even if home values continue to soar. Imagine that your £200,000 home suddenly becomes worth £300,000, but your £150,000 loan balance remains unchanged. The 75% LTV ratio you were looking at before has now dropped to a far more manageable 50%. Your debt remains the same in absolute terms, but as a percentage of your portfolio value, it is now little larger than a tea biscuit.

The kicker is that... As a result, the sky's the limit...

First, there's the huge sale. Picture this wonderful scenario: your loan-to-value ratio has smoothly decreased to 25% on each of your four properties over the course of many moons. The debt on the other properties can now be eliminated with the sale of just one! Poof! vanished in a haze (except for the tax, of course). Now you have three properties that are happily generating money and rising in value without the burden of a mortgage. Yes, please!

However, that's not all...

The second choice is the eternal mortgage. Refinancing, what a wonderful thing it is. Each time you do this, you begin a brand-new term (usually for 25 years). When it comes to loans, age is nothing but a number, my friend. Mortgage payments can be made well into retirement. Also, as I ramble on in this video, you can have a lot of fun by forming a company and enlisting your kids to serve as directors. Inflation eats away at your debt, making the situation seem less dire than it actually is. The mortgages don't care if you die first, old mate.

Third Choice: The Big Auction of Property When mortgage lenders come knocking, you might smile devilishly and reply, "Why, the sale of the property, of course!" That's a reasonable response, honey. There is nothing prohibiting you from selling your investments, using the proceeds to settle your debts, and retiring early. My property-seeking friend, you hold all the cards.

Let's take a merry look at the news as it is right now...

The most important developments in the past week were:

After last week's surprisingly strong inflation numbers, mortgage rates decided to put on a show and rise by an average of 0.39%. But don't worry! You now have access to a wider selection of goods since many of them that disappeared to undergo price adjustments have strolled back. Very entertaining!

• The Elizabeth Line, London's newest obsession, has generated considerable buzz. The demand for long-term rentals has skyrocketed. Look at Reading—it's grown by 32% in only the past year! I'd have to agree that it's lovely.

According to a report in The Telegraph, repossessions have increased by more than a quarter. Don't fret, though; they're still significantly lower than they were before the outbreak. Those bold headlines were only trying to terrify us a little.

Oh, the Scottish rent control and no-cause eviction policy. There is nothing more permanent than a transitory government program, and it appears that they will be here for another six months. Politicians with their sleight of hand!

So, my fellow property enthusiast, those are the following steps on your fantastic journey. Leave us a Whatsapp Message to let you know it's a no-obligation talk if you're not selling and looking for a property management who offers Guaranteed Rent and pays maintenance costs up to £150 per month. Here's to worry-free financial planning!