Prism Financial Services

Floor 3, Block A Room 20 50 Salisbury Road London Borough of Hounslow United Kingdom TW4 6JQ
0208 1080 266

A Buy to Let mortgage is essentially an investment made by the borrower where the objective is to rent the property rather than reside in it as their primary home. Buy to Let mortgages are generally more expensive, than a standard residential mortgage with lenders expecting higher deposit amounts to be put down by the borrower and the interest rates can be higher too. In most cases, a Buy to Let mortgage will be taken out on an Interest only basis, rather than Capital repayment basis. On an Interest only the borrower would repay only the interest component to the lender, while the capital would still be outstanding at the end of the mortgage term. To ensure that the customer will be able to repay the capital at the end of the term, the lender may require details of the proposed repayment vehicle. Once satisfied the lender would make an offer and if successful this would proceed to completion.