Buy To Let

Investing in property has proven to be a very popular investment in recent years, landlords have taken advantage of property values increasing combined with a monthly income from the rent charged. But how can you get involved when you do not have a spare couple of hundred thousand in your bank?

A buy to let mortgage is specifically to raise money to buy an investment property to let out, many people are off put by stories that buy to let mortgages are a lot more expensive but now with the majority of lenders offering buy to let mortgages the rates have become much more competitive.

You will typically require a bigger deposit than you would with a residential mortgage, many lenders offer buy to lets with the client putting down a 25% deposit but some allow as little as 20%; It will however depend on many factors such as property value and how much it will rent for. It is common practice for lenders to assess how much they will lend based on the anticipated rental income which will have to be more than your mortgage payment, each lender looks at this differently.

When buying an investment property there are a few different types of rentals you can have, the majority will be rented on an Assured Shorthold Tenancy Agreement which is set up for periods of 6 months or longer, other alternatives are Holiday lets, Houses Of Multiple Occupation (HMO's) or Student Lets and each will usually require a different type of mortgage specific to that type of tenant. We can advise and arrange all of these options.