Paul Bradley, a landlord with a single rental property in North London, has told the BBC how the ongoing mortgage crisis has seen his monthly interest-only loan payments triple over the past 12 months.
His case illustrates vividly the significant challenges that the approximately 500,000 landlords who own BTL properties via mortgages in the UK now face as their costs ramp up, and the Government’s removal of Section 24 mortgage relief come home to roost.
Bradley, who is 74 years old, told the World at One programme how he became an accidental landlord after moving from London to the West Midlands some years ago.
He told presenter Sarah Montague (main picture) that his usual mortgage payments have been £304 a month, which he paid via the £1,000 per month rent he charged his long-standing tenant.
Payments tripled
But the recent interest rises have seen his payments, which are for an interest-only mortgage rather than repayment, triple to £923 a month.
“If you take away the tax that I pay on that revenue then in effect I am now subsidising him to live in the property,” he said.
Bradley said he therefore has no choice but to sell the property and has served notice on the tenant, who has refused to move out and an attempt to seek possession of the property has now begun as his mortgage arrears build up.
“I work part time so there isn’t much spare money so until this is resolved there won’t be any holidays or going out for evening meals – that’s all gone.”
Listen to the programme.
