After the interest only mortgage this is the next cheapest option. Generally you will be required to provide 15% of the property value as a deposit. Upon submission of the deposit, the mortgage company will loan you an amount based on the rental income of the property you are purchasing, where rental income can be a minimum of 130% of the mortgage repayments. This percentage will vary from lender to lender.
There are many other types of mortgages available to suit your individual needs – the following are just a few.
Tracker, Capped Rate, Current Account Mortgages, Discounted Variable Rate, Fixed Rates, Flexible Mortgages, ISA Mortgages, Pension Mortgages, 100% Mortgages, Variable Rate and many more.
This type of loan is usually taken out to solve a temporary cash shortfall that may have arisen when buying a property or alternatively when paying for a renovation.