The charge made by a property manager for taking care of the day to day running of a buy to let property. This will include finding and referencing tenants, collecting rent and dealing with any day to day issues that may come up (such as a faulty washing machine)
A loan secured against a property. Should the mortgage interest payments not be made, and no suitable agreement can be made with between the borrower and lender, then the mortgage holder can force the sale of the property. They would then take the amount they are owed (principal plus interest) from the sale proceeds.
Examples of different types of mortgage:
- Buy to let loan
- A buy to let ('BTL') mortgage is a loan taken out to purchase a property with the specific intention to rent the property to generate income.
- Development loan
- Generally used by a construction company for developing property. The loan is secured against both the land and property. The scale of the project being financed can range from light refurbishment work to a major construction project.
- Bridging loan
- Used to 'bridge' a gap in the short term while a longer term solution is found. For example, it may be to cover a slightly longer development period than originally anticipated before a property can be sold. They typically have higher interest rates with durations between one and twelve months