Mortgage - two-year deal ending - default to lender's SVR or change mortgage company

[EmGee]

I have a mortgage on my rented property in the Uk (live abroad so it is a non-residential, landlord's mortgage although the property was originally my home before I relocated). The current deal I have will end at the end of the month and unless I do something, will default to the lender's SVR rate. I am assuming that is not a good thing!

It's interest-only and the repayment costs (at the moment) per month are not high - under a quarter of the monthly rental income. It is not a very large mortgage - approx 30k.

Is it best to remortgage (with a different lender if necessary) and change to a repayment mortgage?

I could potentially pay off a large chunk of it but the tax relief on the mortgage payments is beneficial to me from both a Uk point of view and also taxation in my country of residence (which taxes on world-wide income). It is easier for me to stay with current lender (from a bureaucratic point of view - have always had the mortgage with them, also bank with them) - how can I best renegotiate with them to get a good deal?

Thanks in advance for any tips. As you've probably guessed, I am not the most financially-savvy.

Assume nothing : look up your banks SVR and bear in mind that arrangement fees can make a mockery of differences in interest rates

Yes, the IRS gives you tax relief on the mortgage payment, not sure how that ties with the separate HMRC reliefs

what does your US accountant say?

I'm not in the US and I don't have an accountant.

Good point re the costs of arrangement fees/administrative costs...will bear that in mind, thanks Talkin

I'd speak to a broker for advice - I recommend London and country. They will do all the sums for you and recommend the best/cheapest deal, l&c do not charge you commission so it would only cost you the phone call

I emailed our lender when our two year discount ended and they offered us a choice of other deals - was very easy and no application forms, proof of salary etc!