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Buy to let Mortgages are becoming increasing popular. Since 2000 the number of buy to let Mortgages taken out increased from 70,000 to 800,000 in 2008. These mortgages are the backbone of UK property investments.
Generally you expected rental income should exceed your expected mortgage repayments by 25% or more in order to get a good deal. You will need to assess this before you decide to buy the property and apply for a buy to let mortgage. This buffer is intended to cover any unexpected costs that you may come across as a landlord. This may include costs such as vacant periods, bad paying tenants and maintenance costs.
Buy to let mortgages are usually available for property investments such as:
New build / Student lets / Mixed commercial and residential / Holiday lets / Office space / Hotel room investments / Property development
Always aim for a higher deposit (LTV% - Loan To Value ratio) to save you on interest and try speaking to several lenders before committing. Cheaper rates would usually include early repayment penalties and if your investment objectives are long term and you are in no rush to pay off your mortgage, you may be in for a good deal on the interest rate.
Buy to let mortgages are usually available for property investments such as:
New build / Student lets / Mixed commercial and residential / Holiday lets / Office space / Hotel room investments / Property development
Always aim for a higher deposit (LTV% -
Many high street lenders offer buy to let mortgages with a range of product terms. If you shop around for the best buy to let mortgage deal you could be looking at a rate which is only 1% - 2.5% over the base rate.
A buy to let mortgage is a loan to finance a property which with be let as a private rental, rather than occupied by the owner. The property itself provides the security for the lender but in order to get a buy to let mortgage anything above a 25% deposit is required. Lenders will consider your current finances and your credit score before agreeing and buy to let mortgage in principal. The rental income you expect to gain and the market value of the property are key factors when it comes to getting the mortgage and you will need to make sure that you have done your homework.
Buy to let