Are buy to let mortgages interest only?
Most landlords select the interest-only option when applying for a buy to let mortgage. It means the monthly mortgage payments are lower so the cash yield from the property is increased. This allows the landlord some additional income each month while the property increases in value over time.
The disadvantage is that your mortgage balance does not decrease each year so there needs to be a plan on how it will eventually be repaid. This could include selling the property.
Even with an interest only mortgage you can still make extra lump sum payments during the year if you prefer to see the mortgage balance reducing.
HOW CAN WE HELP?
Choosing a mortgage is an important financial decision and it’s easier with someone who’s on your side. We work as a whole of market mortgage broker so that you get the best possible choice of mortgages.
DRAKE MORTGAGES ARE EXPERT BUY TO LET MORTGAGE BROKERS
We are experienced whole of market brokers who can help you get a great holiday let mortgage.
We can also give you access to exclusive schemes and some specialist lenders who don’t deal direct with borrowers. Loans are available to individuals and SPV’s upto 75% and we can help with Scottish properties, mixed use, multi-lets and Airbnb.
Bridging loans are one of the most useful, multi-purpose, types of lending solutions available. You can get a bridging loan approved on almost any property for almost any reason. Great for auction purchases or snapping up a buy to let bargain.
And we can arrange them really fast.