BUY TO LET MORTGAGES
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We offer free and unbiased advice and will tailor a Buy to Let Finance solution for clients to meet their exact needs and budget.
Buy-to-let mortgages allow borrowers to secure a first charge loan using residential investment properties as collateral. These mortgages are structured so that the property is rented out, with the tenant’s rent covering the mortgage payments.
An HMO mortgage is a variation of a buy-to-let mortgage secured on properties with multiple tenants, known as Houses of Multiple Occupancy (HMOs), which typically share bathing and kitchen facilities.
A Holiday Let mortgage is another type of buy-to-let mortgage, but with restrictions on long-term tenancy.
A portfolio mortgage combines elements of buy-to-let lending and commercial mortgages, offering loans across multiple properties. In buy-to-let form, each property has an individual loan charge, while in commercial form, a single loan facility covers multiple properties. Buy-to-let mortgages typically come in two main forms: interest-only for individual properties and amortising for commercial arrangements.
Interest only products
Capital and interest repayment products
A buy to let mortgage provider will lend to a set percentage of the purchase price of the property and this is generally at the top end (Loan to Value) of alternate forms of finance – as of late 2011 the highest LTV’s available are 75-80%.
As a long-term product the rates often tend to be very competitive and the borrower is provided with a choice of a fixed or variable rate product. A fixed rate product allows the borrower to plan monthly expenditure; a variable rate product holds the advantage of a potentially decreasing monthly payment.
For more information about Buy to Let Mortgages please call us today to see how we can help or submit an enquiry and we will contact you.
