Home Reversion Plan
Buy to Let and Holiday Let
Are Buy to Let Mortgages More Expensive Than Residential Mortgages?
Buy to Let verses Residential
In general, buy to let mortgages tend to be slightly more expensive than residential ones, however, the difference isn’t huge.
What is the advantage of Buy To Let
The real advantage of buy to let mortgages is that many are offered on an interest-only basis. This allows you to keep your monthly payments low, which is ideal for long-term investment.
You only pay the interest on the loan, while the property itself appreciates in value over time. It’s a smart way to build wealth without a large monthly commitment.
As experienced mortgage brokers, we can help you navigate the buy to let market. We’ll compare deals from a range of lenders and provide tailored advice to find the best option for you. While interest-only mortgages are the most common, there are other options available, such as repayment mortgages, fixed or tracker rates, and even discount deals designed specifically for landlords.
We take the time to understand your investment goals, whether that’s growing your property portfolio, boosting rental income, planning for long-term gains, or even purchasing a property for a family member to rent. At Aviella Mortgages we aim is to help you find the right mortgage solution for your unique needs.
It’s worth mentioning that buy to let mortgages are generally more complex than residential mortgages. How much you can borrow depends on the rental income the property generates, and lenders use various stress tests to determine your affordability. If you’re thinking about setting up a limited company or managing multiple properties, it’s a good idea to consult with a tax professional before moving forward.
Holiday Lets
If you’re thinking about holiday lets, this can be a fantastic investment opportunity, especially in popular tourist areas. While holiday let mortgages may have slightly higher deposit requirements and different criteria, they also offer the potential for excellent returns thanks to seasonal demand. We can guide you through the process of securing a holiday let mortgage, helping you understand the benefits and options available.
Given the complexities of buy-to-let and Holiday Let lending, professional mortgage advice is essential to ensure you secure the best deal. We’ll guide you through the process, helping you make informed decisions and find the right funding for your investment.
Holiday Home vs Holiday Let
It’s crucial to understand that a holiday home is for your personal use, and typically you wouldn’t rent it out to guests. In contrast, a holiday let is an investment property that you rent out on a short-term basis to generate income.
If you’re looking for a mortgage for a holiday home, it’s important to ensure you’re choosing the right product for your specific needs.
We’re here to help you navigate both options and find the best mortgage to suit your plans.
The Financial Conduct Authority does not regulate some aspects of buy to let mortgages.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
