BUY TO LET MORTGAGES

Most buy to let mortgages are not regulated by the Financial Conduct Authority.

Becoming a private landlord should not be seen as an easy way of making money. It can be riskier and more complicated. It can also be very time consuming and there is no guarantee that house prices will rise. Having said that, buying a second property to let to tenants could reap considerable financial rewards over time.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

The Different Types Of Mortgage

There are 3 main differences in buy to let mortgages:

Rent Potential

Most lenders will look at whether or not to offer you the mortgage based upon the monthly rent expected against the property value. In some cases your income is not ever considered.

Interest Rate

Buy to let mortgages typically have slightly higher interest rates.

Larger Deposit

Typically a minimum 25% of the property’s value is required as a deposit. Some lenders will allow a 20% deposit but these usually come with a higher interest rate.

When you manage a property there are many costs involved in addition to the monthly mortgage repayments. These additional costs include:

If you are looking to make a profit from a buy to let property over a long period of time then look towards the property as being an investment and not somewhere for you and your family to live. Do some research of the rental market in that area and speak to letting agents to see how desirable the type of property is to tenants.

GET A CONSULTATION

We’re more than happy to come out and see you, at a time that suits. Evenings & weekends too, if needed!