Investing in property
Mortgages are not limited to residential property; they can also be used to raise finance for buy to let property and commercial property. Businesses have two ways to raise finance – retained profits and loans. If the finance required by the business is to be used to buy commercial property it makes sense to use a loan with a low interest rate. Mortgages are renowned for their low interest rates because they use the property as security for the lender. This lowers the lenders’ risk of losing their money and so they can afford to charge lower interest rates in order to remain competitive in the money lending market.
This section explains mortgage products that can be used to finance investment, whether commercially or privately.
Buy to let mortgage
A buy to let mortgage is designed for people who want to buy property
with the intention of letting it out to tenants, using their rental
income to repay the mortgage.
Commercial mortgage
Commercial mortgages are specifically made for business property purchase,
business expansion and the funding of business activities in the case
of a commercial remortgage.
Let to buy mortgage
Let to buy, or let and buy mortgages are used to finance the purchase
of a new property bought by a home mover, whilst the old property is
let out to fund the let to buy mortgage on the new property. This avoids
being caught up in the property chain and is also a potentially strong
investment opportunity.
Mortgage for foreign
property investment
Find out about the different finance options available to you if you
are thinking of purchasing property abroad.