Property Investment Strategies Are Vital If You Have Interest Only Mortgages

There are certain property investment strategies that could be the saviour to those with an interest only mortgage as a means of repaying the loan at the end of the mortgage term.

According to a report by BDRC Continental, only 560,000 households with an interest only mortgage have an investment plan that will enable them to repay their debt at the end of the mortgage term. That’s just 31% of all homeowners with an interest only mortgage.

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Millions of people who took out interest only mortgages before the housing bubble burst are now faced with the pressure of having to repay their mortgages. There are options open to such families in this position, although some of them may not be as appealing as others.

The essential message however is that those with interest only mortgages do have to repay the debt and this shouldn’t be forgotten. Planning your route for repaying and taking action like the family within this article is far better than being forced into a situation because the Endowment you thought would cover the Mortgage debt has failed to deliver.

Given that 31% of those who took out an interest only mortgage have an investment plan that is on course to deliver, we are left with 69% who are not due to meet their target.

Let’s not forget that residential mortgages aside, the same requirement to have a plan for the repayment of the debt is just as relevant for buy-to-let investment mortgages. The trend within the property investment world is to follow the ‘interest only route’ and let inflation erode the value of your debt.

However as an investor although it is easier to sell a property to pay off debt (as you have little or no emotional attachment to it) you still need to work out and plan your strategy. In both cases it is a lack of planning and keeping up-to-date with the changing market which can leave you financially exposed.

This why it is essential that people seek the appropriate property investment strategies when building a property buy to let portfolio.

If you like to discuss your options or how to get started in property investment, please call me at Alton Property Partners on 01628 560 821 or arrange a call back

Gill Alton

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Gill Alton is the founder of Alton Property Partners, which provides a comprehensive and personal Property Portfolio Building Service for investors in the UK.

Alton Property Partners manage the entire investment process, from sourcing property at a discounted value, co-ordinating the Mortgage, arranging the refurbishment, right through to ensuring it is ready for the rental market.

The service is specifically aimed to support those who recognise the value of a UK investment portfolio, but lack the time, or knowledge to be able to invest for themselves because they are full time employees or Business Owners. With full consultation and comprehensive financial analysis, clients can be assured that their portfolio of strong yielding properties will be built to exacting standards and they will be kept up to date every step of the way.

Having been involved in property for 16 years Gill has built a personal portfolio for her family, and in addition to Alton Property Partners, runs a Property Mentoring Business, Venus Property Mentoring which focuses on supporting new investors onto the investing ladder. Having originally left the Corporate world to be a Qualified Mortgage Broker, Gill’s husband now focuses on their family Mortgage Brokerage in Maidenhead – Alton Mortgages.

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Alton Property Partners
6 Bramble Drive, Maidenhead BerkshireUKSL6 3NX United Kindom 
Gill@altonpropertypartners.co.uk •0845-095-5060

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