borich

looking at buying a house for 50k up north and was wondering if anyone has any rough idea if i took out a mortage for 40k what the possible lowest monthly payments could be on the house? as im thinking of letting it out for around 300 a month and a mortage of 100 or below per month would be ideal to make renting it out worth while.

Borich

ProperCharlie

you are looking at about £250 a month on a repayment mortgage.

ProperCharlie

have a look at www.charcolonline.co.uk to see what kind of deals you could get

borich

would it be possible to get a mortage to get the monthly payments down to 100 a month not fused if its a 50 year mortage with high interest.

Borich

ProperCharlie

no idea about 50 year mortgages. it would work out very expensive in any case.

imlach

Presumably to keep the mortgage payments low, you'd be going for an interest-only mortgage.

...in which case, the mortgage payment remains the same no matter how long or short the term of the mortgage The capital is not decreasing over time you see.

The interest on a 40k mortgage is £166.67/month with a 5% interest rate. You'd need the interest rate on the mortgage to be 3% to only pay £100/month. You may get 3% on a short term deal, but there'd be some tie-in at the end.

You're going to have to decrease your profit margin.....