What is a Buy To Let Mortgage?
Buy to let mortgages are mortgages for property owners who rent out the property instead of living in it themselves. If you are looking to invest in property, this is a great path to go down; the long-term results of property investment consistently show good returns.
This type of mortgage is more expensive, though – money lenders will typically look for higher deposits to cover the associated risks. Specialist advice from Hawke Financial Services Llp will help you to find the right BTL package and make the most of your finances.
How Buy To Let Mortgages Work
Most buy to let mortgages are interest-only, meaning your monthly repayments go towards the accrued interest on the loan. This repayment should be reasonably covered by the rent payments you receive from tenants.
The capital debt on the property is then paid at the end of the term agreed with the lender. With a successful investment, this lump sum can be covered by the proceeds from selling the property.
Interest-only mortgages are not the only option, though, with repayment BTL mortgages becoming more popular. Hawke Financial Services Llp will explore your options with you and help you choose the ideal product to see a satisfying return on investment.