taboola tracking pixel

Glossary

Management Fee

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)

Mortgage

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

Join British Pearl today.
Start building your own portfolio.

Subscribe

to our newsletter

Sign up to receive details of investment opportunities and special offers as well as commentary on the property market and crowd investing.

Your capital is at risk Investing in property involves risk. The value of your investment can go down as well as up and historic performance is not a guide for future performance. Any projections of future performance are based on all information known at the time of share investment or loan, and internal calculations and opinions of British Pearl. These are subject to change and are not guarantees and should not be relied upon as such. Risks include the total loss of your share investment or loan, variable rental income due to property not being rented or a depressed rental market, and inability to sell your share investment or loan due to lack of a buyer. Investing with British Pearl falls outside the remit of the Financial Services Compensation Scheme. Please refer to the Key Risks section of this site for a more comprehensive description of the risks involved.

British Pearl ® is the trading name of British Pearl Limited (Company No. 7151774), a company authorised and regulated by the Financial Conduct Authority (Register No. 674693) and British Pearl Finance Limited (Company No. 10575280 and Register No. 770867), which is an appointed representative of British Pearl Limited. Both companies are wholly owned subsidiaries of British Pearl Group Limited (Company No. 9701436) and all are registered in England and Wales at 4th Floor, 7-10 Chandos Street, Cavendish Square, London, W1G 9DQ