Expand Your Portfolio Throughout Dorset

Buy to let Mortgages allow the borrower a first charge loan using an investment residential property as security.

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.

A HMO Mortgage is a conventional buy to let mortgage taken over a security that has multiple tenants. It is referred to as a House of Multiple Occupancy i.e. shared bathing and kitchen facilities.

A Holiday Let mortgage is a conventional buy to let mortgage on a security that has long-term tenancy restrictions.

A portfolio mortgage straddles the border between buy to let lending and commercial mortgages as it is a loan over multiple properties. In a buy to let form this will take individual loan charges against each property, whereas in commercial form a single loan facility can stretch over multiple properties. The former tends to be interest only, the latter amortizing.

The two main forms of buy to let products are Interest Only products, or 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 January 2021 the highest LTV’s 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.

For more information and guidance on refurbishment loans or any other type of commercial finance please submit an enquiry from our contact form here or call 07788 975 356 or 01202 779 147