Why choose an interest only mortgage for your Buy to Let?
Most landlords weigh up whether to opt for an interest only mortgage or a repayment mortgage. Much will depend on how you intend to use the property and income in the future.
We can help you make this decision by doing all the calculations and breaking down the options for you.
With an interest-only mortgage, you’ll only pay the interest owed and none of the capital you’ve borrowed. This generally makes your monthly payments lower than if you were on a repayment mortgage. When the mortgage term ends, you’ll then have to repay the entire capital balance or sell the property.
Most landlords assume that house prices will have risen over the period of the mortgage. This will provide enough money from the sale of the property to repay the capital, pay any tax due and have some profit left over. The best advice is to put aside money each month in case your house doesn’t increase in value as hoped.
The amount you pay on your Interest Only Mortgage will be much less than the monthly income you generate from the property therefore providing you with a greater profit margin. If you go for a repayment mortgage your payment will be higher meaning more of the rental income will be used up by paying the mortgage. However, your mortgage will reduce over the years meaning you’ll have greater equity within the property in the later years.
But don’t worry we’ll go through all the pros and cons with you. We will let you know how much you can borrow, and which is the most suitable option for you.
We will work hard for you to help ensure you get a positive result.
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.
How we work
- Take time to get to know you and your intentions
- Personalised, hard working service
- Close relationships with specialist lenders
- Detailed research to ensure you save money
- Take care of the paperwork to minimise stress
- The experience to get a good result for you
Why choose us?
We are not like other brokers. We have over 80 years of experience in the mortgage and protection industry. Our clients include portfolio landlords, single property investors and Limited Company landlords. We have the expertise to make the difference for you.
We have over 100 five star reviews on Google and over 90 verified reviews on VouchedFor. And we would love to work hard for you.
To speak to a member of the mortgage advice team about your Buy to Let Interest Only Mortgage ring Your Mortgage Expert now on 01722 322683. Or complete a contact form using the link below.
Meet the team
Our small, friendly team is based in the heart of Salisbury, Wiltshire. But we can help you no matter where you live in the UK. Sometimes it’s nice to put a name to a face. So if you want to find out more about us, visit our Meet the Team page.
Our team has:
- Over 80 years of experience in the mortgage and protection industry
- All members of our customer facing team have mortgage qualifications
- We have over 100 five-star reviews on Google
- Have helped hundreds of Buy to Let investors
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Dan Harris - Mortgage Adviser
Dan Harris first started working in mortgages in 2004. Since then, he has helped lots of people to remortgage. Dan has great attention to detail and will do the hard work to ensure you get the best recommendation. -
Adam Nanson - Mortgage Adviser
Adam Nanson has worked in the Mortgage Industry for over 20 years. He has expertise with working with Contractors and Self Employed individuals. He'll work hard to get the best rate for you.