Investment mortgage products designed for landlords of rental properties
These mortgages are now only offered with very strict criteria and aren’t available to everyone. With an interest only mortgage you only pay the interest charged on your loan so you’re not actually reducing the loan itself. You’ll need to have a feasible repayment strategy in place to repay your mortgage at the end of the term. For example investments and/or savings plans. Lenders will want to see proof of these and approve them.
The advantage of an interest only mortgage is that if the savings or investment plan you choose performs well, then you could pay off your mortgage earlier compared to a repayment mortgage. At the full mortgage term there may be a lump sum available after the mortgage has been paid.
The disadvantage is that very few investments are guaranteed to repay your mortgage in full. If your savings or investment plan doesn’t cover the full amount, you’ll be responsible for paying the difference.
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If you’re a rental landlord and would like access to award-winning, no-jargon advice and the most competitive deals on the market, why not get in touch?
We don’t charge for our advice. Instead, we simply charge a fee for processing your mortgage application. Our typical fee is £500, however the actual fee will depend on your circumstances. The total fee shall not exceed 1.5% of the amount of your mortgage.
We will also receive commission from the lender in addition to the fees you pay. We can provide you with information on the levels of commission payable by the lenders on request. These fees are subject to the terms and conditions of your signed fee agreement