Choosing the right buy-to-let mortgage

It is always advisable to speak to a mortgage adviser for this stage, we will listen to your circumstances and help to recommend the most suitable mortgage products available to you, based on searches from a wide range of lenders.

Broadly speaking, there are typically two main types of payment methods - repayment or interest-only. In a repayment mortgage you would make monthly payments towards both the interest and the capital borrowed, so by the end of the mortgage term you could potentially repay the entire balance, whereas with interest-only mortgages, you would typically only pay the interest only, with the outstanding balance remaining.   

Majority of buy-to-let investors typically opt for the interest-only mortgage option, which can be useful if intending to sell the property at the end of the mortgage term, after which you would repay the mortgage capital outstanding. The benefits of interest-only mortgages mean lower monthly payments which can leave more disposable cash from the rental income to cover any additional costs when occurring.

There’s also choice on fixed or variable rate mortgages, with the fixed rate, they remain stable regardless of interest rate fluctuations, and for a landlord this could enable greater stability in managing cash flows.

As always, the best course of action is to speak to an expert mortgage adviser to assess your situation and listen to your needs before recommending the most appropriate mortgages to suit your needs.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

There may be a fee for mortgage advice. The Financial Conduct Authority does not regulate some forms of buy to lets.

We do not provide tax advice, but can provide contacts if specialist tax advice is required