Posted on 2 September 2013 by Jamie
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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