Recently a RentCentral user got in touch with a quick query: she’s extended an existing mortgage on one of her properties by another £55,000 and wanted to check how to record this in RentCentral.
RentCentral does a great job of tracking both the interest payments and the total borrowed amount of any mortgage. You can track portfolio values and see how much you owe the bank at any time. To make sure this data stays relevant and correct, it’s important to record any changes in your mortgage.
Once you’ve set up a mortgage in RentCentral, you make changes to it in three ways:
- Paying interest (usually monthly)
- Repaying capital, either monthly (in the case of repayment mortgages) or in lump sums
- Borrowing more capital
Interest payments are filed under Mortgage interest, whereas any changes to the borrowed (capital) amount are filed under Mortgage capital repayment.
If you’re extending your mortgage, use a negative figure to represent the withdrawal of money from the mortgage account.
Here’s a quick walk though:Log in to your RentCentral account and either create a manual transaction, or add a new explanation to an uploaded transaction. Date: the date your mortgage was extended
Category: ‘Mortgage capital repayment’
Mortgage: Select the relevant mortgage from the list
Value: -£55,000 If you then view the relevant mortgage statement, you’ll see that the negative repayment transaction is listed as ‘Mortgage value increase’.
Unless you have a really great lender, your monthly interest payments will increase. Just continue to record these payments as before using the new higher value.