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Mortgage Services

Choosing the right mortgage product can be difficult considering there are various types of finance scheme available to Buy to Let investors.

Repayment mortgages appeal to the more conservative investor who wishes to only purchase perhaps one or two properties and to pay them off over a number of years.

The most popular, however, is the Interest Only mortgage. This requires the borrower to pay only the interest each month, leaving them to repay the principal amount at the end of the mortgage term by whatever means they choose.

Whether you choose a Repayment or Interest-Only loan, our financial consultants will help you find a product where the percentage rate of interest is affordable under your circumstances. Normally the rate is expressed as a percentage above (sometimes below) base rate, but generally speaking the deals with the most attractive rates will have either higher arrangement fees, require a larger percentage deposit, carry an “early redemption” fee, or sometimes all three!

A standard Buy to Let mortgage will be for a maximum 85% of purchase price (known as “percentage Loan to Value” or LTV) but can, in certain circumstances, be arranged as 85% of the valuation of the property. If you are buying at a 15% discount, a mortgage of 85% of open market value means you are paying zero deposit. It doesn’t happen every time but it is possible.

There are a variety of interest rates including:

Standard Variable Rate (SVR) which will be determined by the lender and go up and down more or less in line with Bank Base Rate, but usually at a higher level than a Tracker.

Fixed Rate, for a pre-agreed period of time

Capped Rate, for a pre-agreed period of time

Discounted Rate, for a pre-agreed period of time

Tracker Rate, which will go up and down exactly in line with Base Rate, at a fixed percentage above or below.

Your home may be repossessed if you do not keep up repayments on your mortgage