![]() The lender can then issue you a redemption statement, which confirms the specific amount to be repaid. In most cases, a lender will contact you at least a year prior to the end of your term to remind you of the deadline, then again at 6 months, and then once more as the closing date approaches. In this type of mortgage, interest is paid monthly and the total loan repayment is deferred until the end. ![]() The original amount borrowed by the borrower must be repaid in full when the interest-only mortgage expires. What happens at the end of an interest-only buy-to-let mortgage? You can discuss this in more detail with one of our specialist property accountants if you would like to find out what options are available to you. Your lending costs could be reduced as a result. This is especially true if you have had a variety of interest rates on your previous loans. ![]() You may want to consider consolidation if you already have multiple buy-to-let mortgages as it may be possible to reduce the amount paid overall by consolidating multiple debts into one property loan. Those with fixed-rate mortgage deals won’t see their rates change until their current offer expires, but those with tracked and variable rates may see their profits wiped out by their mortgage costs, which rise along with the base rate. To finance their investments, landlords typically choose interest-only Buy-to-Let mortgages because they are less expensive and are usually covered by rental income. ![]() Why are interest-only mortgages a common choice for buy-to-let properties? ![]()
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