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, borrowing up to 80% loan to value ratio.
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.
The two main types of buy to let products are:
- Interest only products
- 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 2018 the highest LTV 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.