This is widely used for someone who wants to invest in property to produce an income and also benefit from any long term growth in the price of the property.
A mortgage is secured on the property and the anticipated rental income is used to clarify whether the property is viable for a buy to let mortgage. The typical rental income normally has to be 125% of the anticipated interest payments, although this calculation can vary from lender to lender and some may even take into account the prospective landlords salary.
Demand for this sector is growing as more and more people find it difficult to get on the housing ladder and therefore renting is their only option.
There are two types of people who this type of mortgage may appeal to
- • Professional buy to let landlord - May have one or numerous properties that they let out purely as a business.
- • Reluctant buy to let landlord - People who are looking to sell but are finding it difficult, but still want to move house. They can arrange a buy to let remortgage on their current property to assist them in purchasing their new home.
On the upside a buy to let can provide you with potential growth in property price and an ongoing income. On the downside landlords must prepare for when the property could be empty and they are not receiving rent to cover the mortgage interest payments.
So whether you are a professional buy to let investor or a reluctant one, any form of buy to let lending needs to be meticulously planned. We can assist you in all aspects of your investment.
If you are interested please give us a call on 01902 847920 or fill in your details on thecontact form and someone will be in touch within 24 hours.
Our first initial consultation will be at no expense to you. Subsequent consultations may incur a charge. Pleaseclick here to see a copy of our fees and charges.
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR BUY TO LET PROPERTY. YOUR BUY TO LET PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
The Financial Services Authority does not regulate some forms of buy to let mortgages.