A Buy to Let mortgage is usually an investment opportunity for someone to buy a property specifically to rent out.
Buy to Let mortgages can also be arranged for existing properties in cases where the borrower rents out their home and moves out to live elsewhere, if a Consent to Let from their current lender is not the best option.
This type of mortgage:
· tends to come with higher interest rates and a minimum deposit of around 25% of the property’s value, although a number of lenders will accept a lower, 20% deposit.
· is not regulated by the FCA (Financial Conduct Authority), unless you are getting a mortgage on a property you are living in, or that you are letting to a close family member.
· works like a regular mortgage, with fixed and variable repayment terms, however many Buy to Let mortgages can be arranged on an interest-only basis, meaning no monthly interest is paid on the lump sum borrowed and that at the end of the mortgage term the full loan has to be repaid.
For further information and advice on Buy to Let mortgages, contact Mark Gilruth today on 01302 244977.
As a mortgage is secured against your home, it could be repossessed if you do not keep up the mortgage repayments.
A buy to let mortgage will be secured against your property.
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