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What are the payback options for Buy2Let after I secured financing?
What are the payback options for Buy2Let after I secured financing?
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Written by Pidah Tnadah
Updated over a week ago

For Buy2Let financing, the model requires that your guaranteed rent is used for payback.

There are 3 scenarios:

  • Rent Surplus: The guaranteed rent is enough cash to cover the running cost of the property, monthly repayment, and still gives extra cash to the owner.

  • Rent Fit: The guaranteed rent is just about enough cash to cover the running cost and monthly repayment. No extra cash is paid to the owner except rent earnings increase over time.

  • Rent Insufficient: The guaranteed rent can only cover the 10% statutory letting and management fee and can cover part of the monthly repayment, the balance of the repayment is covered and paid by the owner to BuySmallSmall monthly.

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