What are buy-to-let mortgages?
Buy-to-let mortgages let landlords borrow money specifically to buy a property to rent out. They work just like a normal mortgage, but lenders take the potential rental income into account when deciding how much money they are happy to lend
How do buy-to-let mortgages work?
Unlike a standard mortgage, with a buy-to-let-mortgage, lenders take your income into account as well as a percentage of the rental income you will get from letting the property.
Buy-to-let mortgages usually are on on an interest-only basis, which means that repayments will not go towards repaying the loan and at the end of the buy-to-let mortgage, it is the cash from the sale of the property that covers the outstanding amount. You can make lump sum payments or capital reductions dependant upon the particular scheme.
Buy-to-let mortgages are available as fixed, discounted and tracker and other options may be available to suit your particular requirements.
You will need a larger deposit for a buy-to-let mortgage than a standard mortgage, due to the higher risk involved but we work with a select panel of lenders that will be able to offer various options for you. Contact us and we will discuss your requirements and select a suitable product from our panel for you to consider.
The overall cost for comparison is 3.6% APR typical for mortgages the actual rate available will depend on your circumstances. Ask for a personalised illustration.There will be a fee charged for mortgage advice. Our typical fee is 3% of the amount requested with a minimum charge of £1495. (EXAMPLE a £50,000 mortgage advance the fee payable would be £1500) All fees are payable upon acceptance of a lenders offer.
