Can I get a Buy To Let mortgage on a repayment basis?

Posted on 2 September 2013 by Jamie

Can I get a Buy To Let mortgage on a repayment basis?

I own my own property outright. I want to buy a second property to rent out. Why do I need a buy to let mortgage? Why can't I just get a repayment mortgage?


You would have to get a Buy to Let mortgage as the property you're buying will be let out. However, there's no reason why you can't take it as a repayment mortgage. You do need to be aware that the monthly payment on a repayment basis may be higher than the rental income and therefore you may need to subsidise the mortgage payments, from your personal income.

If you don't want to take the mortgage out on your new investment property, then if there's sufficient equity, we could look at raising the mortgage on your unencumbered main residence, which would enable you to pay cash for the rental property.

If you'd like to explore your options in more detail, then please let me know and I'll organise a convenient time for you to speak to one of our consultants.



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Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

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