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BTL repayment versus interest only

Buy to Let Mortgages
When considering your BTL mortgage a lot of clients chose interest only mortgages but why is this the case?

As opposed to your residential property which will normally be on a “repayment” mortgage, the BTL market heavily leans towards “interest only” due to the sale of the BTL property being a repayment vehicle.

This means that when it is time to sell up, you will typically be able to sell the property and use the proceeds to pay off the mortgage. Advantages of this are that you will have a lower monthly mortgage on the BTL meaning more potential for profits and in times of the property being un-let, you are not burdened with an extra repayment mortgage.

Your home may be repossessed if you do not keep up repayments on your mortgage.There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. The fee is up to 1% but a typical fee is 0.3% of the amount borrowed.