Buy
to Let Mortgages: what are they?
Buy
to let mortgages are different to residential mortgages. Residential mortgages
are the most common mortgage in the UK, but what happens if you are buying property
with the intention of letting it? Becoming a landlord and letting property can
be profitable.
That's where a buy to let mortgage comes in. The buy to let mortgage market is different from the residential mortgage market. Whereas residential mortgages are calculated on the applicant's salary, buy to let mortgages are calculated using a different method. The buy to let mortgage lender requires the borrower to prove that their rental income will cover the interest on the mortgage.
Find
out more about the types of buy
to let mortgages available.
Buy
to Let Mortgage Brokers
An
independent buy to let mortgage broker can advise on the best buy to let mortgage
deal for your circumstances. There are currently around 40 buy to let lenders
operating, offering around 300 different mortgage products, which makes choosing
the most suitable mortgage deal on your own a hit-and-miss affair. However, independent
mortgage brokers like Mortgage for Business with experience in the buy to let
mortgage market since its inception can find you exclusive deals not generally
available on the market.
Buy
to let mortgages come in two main types: interest only or repayment mortgages.
An interest only mortgage is geared towards investors who are planning
on increasing their property portfolio, while a repayment mortgage is
more suited towards investors using the property as a source of income
(for example, as an alternative to a pension plan).
Find
out more about buy
to let mortgage brokers.
Landlord
Mortgages
Buy
to let mortgages are perfect for landlords, allowing you to purchase property
with the sole intention of renting it out. However, as a landlord, you need to
be sure that the rental income covers not just the mortgage payments but also
things like landlord insurance and property repairs.
If
you're considering becoming a landlord, but are unsure about how to proceed, get
unbiased mortgage advice about buy to let mortgages from an independent buy to
let mortgage broker.
Find
out more about landlord
mortgages.
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