Page 19 - February 2024

EXPERT ADVICE
SCOTLAND’S PREMIER REMOVAL
AND STORAGE SERVICE
How does a buy-to-let mortgage differ

from a residential mortgage?

Shirley Mushet, mortgage advisor at ESPC Mortgages, shares what
you need to know if you’re thinking about property investment.

f you’re thinking of buying a property to rent monthly commitment down and as such, may
out and you require a mortgage to help you help you manage your mortgage payments
Ifinance the purchase, you’ll need a specific should you encounter periods where the
buy-to-let mortgage. property is empty. Most mainstream buy-to-
let lenders have an overpayment allowance of
A buy-to-let mortgage is intended for those 10% of your outstanding balance per year that
investing in property, and looking to lease to you can pay down your mortgage with, if you
tenants that are unrelated to you. By contrast, so choose.
a residential mortgage is
for individuals or families Most lenders will accept that
who are purchasing a the repayment vehicle for
home for their own use. an interest-only buy-to-let
Buy-to-let mortgages are mortgage is the sale of the
for business purposes and property at the end of the
are unregulated; as such, term. Ideally you would sell
neither you nor a family the property for more than
member can reside in the you paid for it, and then
property. repay the borrowed amount.
THE ART OF BEING LOCAL, NATIONWIDE
Generally, a 25% deposit is required for a buy- As a landlord, you’ll also have responsibilities
to-let mortgage, and the amount that can such as responding to tenant issues, property With more than 100 years’ experience, we are one of the country’s leading
be borrowed is assessed on the property’s maintenance and compliance with legal companies in household removals and storage. Whether you are moving locally, nationally,
potential rental income. Many buy-to-let requirements, so you may find it easier to
mortgages are taken out on an interest-only engage a letting agent, such as ESPC Lettings, internationally or even need to store your treasured possessions, our team of experts
basis, rather than repayment. This keeps your to help you with this. will ensure that you can sit back while we take care of everything.

For a free moving survey and advice contact:
ESPC Mortgages offer expert independent mortgage advice in Edinburgh. Whether you are looking for first time buyer mortgage JOHN DUNCAN REMOVALS - EDINBURGH
advice, are interested in finding out more about buy-to-let mortgages or would like to re-mortgage, get in touch with the team
on 0131 253 2920 or fsenquiries@espc.com. 0131 654 1200
ESPC@dbonner.co.uk
The initial consultation with an ESPC Mortgages adviser is free and preparation of the information, no responsibility is accepted for any errors
without obligation. Thereafter, ESPC Mortgages’ charges for mortgage which, despite our precautions, it may contain. DOREE BONNER INTERNATIONAL - GLASGOW
advice are usually £395 (£345 for first-time buyers). YOUR HOME MAY
BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A The Financial Ombudsman Service is available to sort out individual 0141 339 6000
MORTGAGE OR OTHER LOANS SECURED AGAINST IT. complaints that clients and financial services businesses aren’t able to
resolve themselves. To contact the Financial Ombudsman Service, please ESPC@dbonner.co.uk
visit www.financial-ombudsman.org.uk.
The information contained within this article is subject to the UK www.doreebonner.co.uk
regulatory regime and therefore restricted to consumers based in the UK. ESPC (UK) Ltd is an Appointed Representative of Lyncombe Consultants
It has been provided in good faith. Whilst every care has been taken in the Ltd which is authorised and regulated by the Financial Conduct Authority.
JOHN DUNCAN REMOVALS ARE PART OF THE DOREE BONNER INTERNATIONAL GROUP
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