What is Buy To Let?
A buy to let mortgage is used to purchase a property which you intend to let out to a third party (i.e. a tenant). These types of mortgages differ slightly from conventional mortgages in that they are not assessed on your ability to repay the mortgage from your income but rather from the rental income generated from the property. Aside from this, a buy to let mortgage is essentially the same as the residential mortgage you may have on your home. You still have, for example, the same choices of mortgage types, short term fixed, long term fixed and variable rates.
The world of buy to let and property investment has grown tremendously over the last few years. Some see property investment as a future pension, some are looking to supplement their current income from the monthly rental and others are trying to buy and sell at the right time to make money on rises in the property value. Whatever it is that has made you consider purchasing an investment property, we are here to help you make the right choices.
Your home may be repossessed if you do not keep up repayments on your mortgage.
How can we help?
Despite the fact that a buy to let mortgage is, in many ways, the same as a residential mortgage, there are important differences which can make it challenging to establish the best deal for your specific needs.
Examples of the differences would be:
- Fees can be higher with buy to let mortgages and are often set as a percentage of the loan, which is in contrast to the residential market.
- Criteria differ from lender to lender in terms of the required minimum rental amount that must be generated from the property being purchase to enable the loan to be approved.
- There can be restrictions on lending levels depending on the particular type of property you wish to buy.
- There may be restrictions depending on your current housing status which may make it more difficult to find the right lender for you.
All of these points mean that it is important to conduct careful research of the buy to let market when establishing the most suitable and competitive mortgage for your specific requirements.
This is where we can help.... Our experienced consultants will take the time to fully understand your needs before applying their expertise to sourcing the absolute best deal from the many buy to let deals available in this quickly growing sector of the UK mortgage market.