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Guide to Buy to Let Mortgages - Page 2
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Buy to Let Mortgage Advice

As with any mortgage there are two main ways of repaying your mortgage, however the advantages and disadvantages are slightly different when considering a Buy to Let Mortgage.

Repayment Type Definition Comments
Repayment Each month your repayment pays a small amount off the loan and the rest of your payment goes towards paying the interest off the loan. This method ensures the full loan is repaid in the agreed term, if correct, regular repayments are made. However, the draw back with this method is that you are not able to offset your repayments against the income tax payable.
Interest Only Each month your repayment only goes towards paying the interest off the loan. At the end of the term, unless you have taken out an investment vehicle such as an ISA Pension or Endowment, you will still owe the full Loan amount. At this point it is common for people to sell the property, pay off the Loan and hopefully enjoy the profit they have made from the sale of the property. With this method of repayment the interest paid on the mortgage can be offset against tax.

Buy to Let Question Use our mortgage calculators to compare repayments between interest only mortgages and repayment mortgages

Once you have decided the way in which you repay your buy to let mortgage, you then need to consider whether you want to fix the interest rate, giving you the ability to budget with fixed regular repayments, or if you want to have a variable rate of interest, which is often lower than a fixed rate but your payments may vary from month to month. Click here to look at the different types of mortgages there are available.

Your home is at risk if you do not keep up with your repayments on your mortgage or any other loan secured against it.

Download the Buy to Let Mortages PDF Guide here - see our other free PDF guides here

Guide Contents

What is a buy to let mortgage?
 Buy to Let mortgage advice
 Buy to let mortgage application
Buy to let market research
 10 steps to owning a buy to let property
 Letting agents
 Buy to let mortgage cost
Buy to let FAQ
Where to get more help

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