Whether your looking to build your residential portfolio, or a business looking to acquire further buy to let properties, here at Wattsford Commercial Finance, we will find the right mortgage for you.
How Do Buy To Let Mortgages Work?
Buy to let Mortgages allow the borrower a first charge loan using an investment residential property as security,
A buy to let mortgage provider will lend to a maximum percentage of the property purchase price depending upon their lending criteria, as of May 2020 the maximum LTV available is 85%. 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 products. A fixed rate product allows the borrower to plan monthly expenditure; a variable rate product holds the advantage of a potentially decreasing monthly payment.
A buy to let mortgage is set-up so that the property can be tenanted out and the mortgage repayments are covered by the rent generated by the tenant within the security.
The two main types of buy to let products include:
- Interest only products
- Capital and interest repayment products