Interest Only Mortgages and Remortgages

Find an interest only buy to let deal?

A buy-to-Let mortgage (BTL) is a type of mortgage used by people who intend to purchase property but rent it out to tenants rather than live in it. These mortgages work in a similar way to normal purchases, but lenders will require a surveyor to estimate the potential rental income of the property. This can be the biggest factor in determining how much the lender will lend.

Lenders will not usually lend more than 85% of a property value if it is going to be let out. The reason is that if the property has no tenant and the client has been made redundant or fallen on hard times, they are more likely to keep paying their residential mortgage than their buy to let mortgage. For most people keep their home is the main priority so in the eyes of the lender buy-to-let’s are a higher risk.

Doing a buy-to-let on an interest basis enables a landlord to keep the monthly payments down. This means that if the property appreciates in value the landlord's mortgage is less than the value leaving the difference as a profit. For those building a property portfolio interest only mortgages provide the ideal opportunity to borrow large quantities with less initial risk.

With about 7% of all mortgages now being buy to let, and the majority of landlords taking interest only deals, the market place is very competitive. this means lenders are changing their options regularly to win your business. This can only be good news.

There are currently around 14,000 mortgage products on the market. Each product offers different features and benefits that may or may not be of use to you.

Get specific information through the headings below: