What is a Buy to Let Mortgage?
Buy to Let mortgage are designed for people purchasing investment property for a medium to long-term investment. An increasing number of people want this type of investment to secure income for their retirement. A buy to let mortgage will allow you to purchase one or more houses and let them out to tenants. When applying for this type of mortgage the lender is going to look at the rental revenue and consider this as part of your income when considering how the loan will be repaid.
Interest rates for a buy to let mortgage will usually be slightly higher than traditional mortgages. They will usually be about 0.5% above that of the normal standard variable rate. Keep in mind that the larger the deposit you put down the lower your interest rate is going to be. There are many ways that you can find a buy to let mortgages that have extremely competitive rates and comprise typically of fixed and variable rate deals.
Buy to Let Mortgages are a great way to invest in the future stability of property and generate significant income.
How do I get a Buy to Let Mortgage?
Buy to let mortgages are not usually offered through typical high street lenders.
As with any mortgage there are of course certain criteria that you must meet in order to qualify for a Buy to let mortgage, such as:
- You will be required to put down a much larger deposit than most of the standard mortgages. A buy to let mortgage deposit will usually be between 15-25% on the property.
- The potential rental income will need to be above your monthly mortgage payment. The percentage it needs to be over will depend on the lender.
- Certain lenders have specific requirements. Some lenders will have restrictions on certain types of tenants.
In order to obtain a Buy to Let Mortgage you will need to contact us and we will be more than happy to assist and provide you with a no obligation quote. Just fill in the form opposite or call us.
We can arrange mortgage related insurances, such as buildings and contents cover should you require.
