What is an interest only mortgage?
An interest only mortgage is a type of mortgage where you only have to pay the interest to the lender each month.
The monthly payments are cheaper than a repayment mortgage. However, at the end of the mortgage term the debt which needs to repaid is the same as you initially borrowed.
How do they work?
With an interest only mortgage you do not have to make any repayments of capital each month. The lender is only expecting the interest, not any of the original debt.
So as each year of the mortgage term passes your outstanding mortgage amount stays the same.
When your mortgage eventually comes to an end you will need to repay the whole mortgage in one go.
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.