Through Precise Mortgages, a talented Your Mortgage Plus Advisor secured a Buy To Let mortgage on a property in Leicester valued at £195,000.
The mortgage broker franchise, first founded in 2004, has grown significantly in the past 17 years. Your Mortgage Plus is now one of the largest commercial finance networks in the UK, and recently, an Advisor within the network completed another mortgage for a satisfied client. In the words of Your Mortgage Plus, “The client required a loan of £136,500 to complete the purchase and decided to do this with an interest only facility to keep their monthly repayments down.”
But what is an interest only mortgage, exactly? According to the brokerage, “In the case of interest only mortgages, you will still be charged monthly payments by your lender, but these payments will only cover the interest charged to your facility.” Essentially, the payments you’re making won’t reduce your loan - they’ll just prevent the total sum of the loan from rising, by covering the interest.
At the end of an interest only mortgage term, customers have a few different options: Firstly, they could re-mortgage and maintain their current situation, paying interest only. Secondly, they could switch to a traditional mortgage with loan repayments, “which would see [them] steadily paying off [their] debt over time”. Thirdly, they could choose to “purchase the property outright, using cash to take full ownership”.
Fourth and finally, if the value of the property changes, it can potentially be sold on for a profit. Your Mortgage Plus explains that, “This final option is one taken by some portfolio landlords, usually opting to free up equity and move on to more attractive or profitable investment opportunities.”
What happens next in the case of the Leicester property remains to be seen, but at this stage, a mortgage has been secured via Precise Mortgages, and the buyer will dictate whether it’s re-mortgaged, switched, paid off or sold down the line. This case “generated £1,314 in total commissions, made up of the £495 broker fee and the £819 procuration fee”. If you’d like to find out more about investing with Your Mortgage Plus, visit the franchise’s profile page, linked above.
Lily Sweeney, Point Franchise ©