Buy to Let
Whatever your reason for a Buy to Let mortgage, I can help you to secure the best mortgage deals for your situation.
A Buy to Let mortgage is a mortgage on a property that will be rented out. Lenders have different criteria for these types of mortgages, so you need to consult an experienced mortgage adviser with whole of market access who can give you the most current information. I think booking an appointment can help put your mind at rest when it comes to the complex market that is Buy to Lets.
Most Buy to Let mortgages are interest only which means only the interest is paid and the capital remains the same without the mortgage term. The repayment vehicle is often the sale of the property.
Interest rates on Buy to Let mortgages tend to be higher then residential loans.
With a Buy to Let mortgage the amount you can borrow is based on the earning potential and profitability of the property, (I.e the rental income) as well as your normal earned income. The rent must be more then the mortgage amount and you must meet the lenders affordability. lenders will also use stressed check that your rental income will cover monthly mortgage payments in different scenarios. Not all lenders use the same formula and some will lend more generously.
There are two ways that you can seek to make a return on your investment : capital growth and rental income. As with any investment, purchasing an investment property does carry risks so it is important to seek expert advice.