Buy to Let Interest Only Mortgages
If you are considering a interest only mortgage for buy to let having a repayment plan strategy in place will ensure that there are no surprises when your mortgage term expires. Some alternative strategies for building up capital apart from relying on rising property prices include:
Alternative Repayment Vehicles for a Buy to Let Mortgage:
This is the most popular type of interest only mortgage, and involves paying off your mortgage with savings that you have stored in an Individual Savings Account (ISA) using annual allowances (£10,200 per person in 2011). ISA mortgages have the benefit of savings that accumulate tax free assuming tax legislation does not change in the long term.
Popular in the past these types of scheme are only available now from a small amount of providers. These types of plan are generally quite expensive and are less flexible than ISA plans.
Pension scheme mortgage
This will involve you using part of your pension to pay off your mortgage. Pension scheme mortgages are potentially most beneficial to higher-rate taxpayers and the self-employed.
If you are interested in an interest only buy to let mortgage, it would be advisable to look at a number of different providers to see what types of mortgage deals are available to you. Alternatively if you require independent mortgage advice on your interest only buy to let mortgage options complete our buy to let mortgage enquiry form or call our mortgage team on 0117 332 6063.