/ Author: SPF

Landlords and property investors are taking advantage of a range of attractive interest only mortgages specifically for the buy to let market.

Perfect for anyone wanting a monthly income without having to factor in the high cost of a repayment mortgage, there’s a range of attractive rates on offer, dependent on loan to value.

The mortgage amount is calculated independently of any existing residential commitments allowing greater flexibility in lending and the interest paid can be offset against the rental income for tax purposes.

Interest only mortgages provide a significant reduction in monthly payments which can act as a cushion for times when the property isn’t let.

For example, a mortgage of £400,000, over 25 years at an interest rate of 1.65%. On a repayment basis, you would pay £1,628 a month. On an interest only basis, you would pay only £550 a month.

Combined with a set fee of £995 and the change in document duty on bonds, remortgaging to an interest only mortgage could potentially save you a significant amount of money on repayments, which is why landlords and investors are making the switch.

At the end of the mortgage term, the capital to the lender can be paid off via the sale of the property or other assets or from other investments/funds.

To find out more, call us on 715234.

INITIAL RATEUNTILMAX LOAN TO VALUE
1.65%2 year fixed rate60%
1.90%2 year fixed rate75%
2.15%5 year fixed rate60%
2.50%5 year fixed rate75%
Rates correct as at 03/06/2019
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