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0131 285 0136

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0131 285 0136

Buy to Let Mortgages

Expand Your Portfolio

Buy To Let MortgagesA buy to let Mortgages allow the borrower a first charge loan using an investment residential property as security.

The buy to let mortgage is set-up so that the property is tenanted out and the mortgage payments are covered by the rent generated by the tenant within the security.

A HMO Mortgage is a conventional buy to let mortgage taken over a security that has multiple tenants. It is referred to as a House of Multiple Occupancy i.e. shared bathing and kitchen facilities. A Holiday Let mortgage is a conventional buy to let mortgage on a security that has long-term tenancy restrictions.

A portfolio mortgage straddles the border between buy to let lending and commercial mortgages as a loan over multiple properties. In a buy to let form this will take individual loan charges against each property whereas in commercial form a single loan facility can stretch over multiple properties. The former tends to be interest only, the latter amortizing.

The two main forms of a buy to let products are:

  1. Interest only products
  2. Capital and interest repayment products

A buy to let mortgage provider will lend to a set percentage of the purchase price of the property and this is generally at the top end (Loan to Value) of alternate forms of finance –¬†as of late 2011 the highest LTV’s available are 75-80%.

As a long-term product the rates often tend to be very competitive and the borrower is provided with a choice of a fixed or variable rate product. A fixed rate product allows the borrower to plan monthly expenditure; a variable rate product holds the advantage of a potentially decreasing monthly payment.

We it comes to a buy to let investment you are looking for ideally two things in return for your capital invested. Ideally you are looking for a good level of monthly cashflow from rent after all expenses including the buy to let mortgages. But you are also looking for capital growth which is essentially the increase in the value of the property.

We can also provide commercial mortgages

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