03 Feb 2016

A question about : worth remortgaging?

Apologies in advance for my limited financial knowledge. I would really welcome any opinions on my mortgage situation.

I co-own a flat and a BTL flat with my partner. Our mortgage has 7 years to run and has Ј30,000 left on it. The BTL is interest only for Ј100,000 with 11 years left on it. Both mortgages are cat mortgages on the standard variable rate. Each flat is worth about Ј450,000. The flats are in the same block.

We are both self-employed with v. low incomes (around Ј10,000 each).
The rent on the BTL is Ј1,300 per month and this covers both mortgages and all our bills.

We went to a financial advisor several years ago to see if we couldn't get a better deal or organise our finances better, and he said we were on a good deal & should stick with it. I've never been 100 per cent confident in that advice. Eg, I have always thought we would be better with no mortgage ourselves but a larger one on the BTL so we could claim it against tax. I suppose he was saying to us that on our incomes no one would give us a better deal.

Are we really in such a best situation we could be?

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    Category: 
    Mortgages & Endowments
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