This week on Ask Rob & Rob, Jacob asked:
How do I pay off my interest-only mortgage?
With an interest-only mortgage, your debt is never paid down, so what do you do? The answer talks about inflation, and how it can reduce the value of your debt, which becomes less valuable over time. If it’s not fully inflated away over time (and it does take time), another option is to sell off some other properties in your portfolio to pay off the mortgages on the rest. If you only have one property, that leaves you the option of selling it to clear your debt.
You can also just keep your mortgages going. Paying off a mortgage is a natural inclination to have, but mortgage debts for buy-to-lets can keep going for decades. This leaves you vulnerable if interest rates go up, but it’s not like it actually has to be fully paid back after 25 years – there’s a lot more flexibility than you first think, even if letting a mortgage run isn’t for you.
Links mentioned in this episode
- The Property Podcast, Episode 24: Inflation – your worst enemy or your best friend?
- Property Hub Courses – all for free!
Ask your own question to Rob & Rob!
Don’t be shy! All you need to do is leave a message with your name and whatever’s on your mind.
Just pick up the phone and call 013 808 00035 (normal UK call rates apply).
Or if you prefer, click here to leave a recording via your computer instead.
Need more answers?
The Property Hub Summit is the place to get all your questions personally answered by Rob & Rob, and build a network of other smart, motivated investors.
Over the course of a full day at a swanky hotel we’ll help you set your goals, form a plan to get you there, overcome your obstacles, and give you the support system you need to make sure nothing gets in your way.
Just don’t hang around – there are only four Summits each year, and just 16 places available at each!
Interested? Click here to find out more.