Buy to Let Mortgages
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Buy to Let Mortgages Search
Search our extensive online buy to let mortgages database for the top buy to mortgages to suit your circumstances.
Buy to let mortgages are specialist mortgages available against property purchased as an investment and rented out by the owner. There are many buy to let mortgages available. The criteria adopted by the lenders of buy to let mortgages are different to non-buy to let mortgages:
• Typically, you will be required to make a deposit of at least 15% against a buy to let mortgage. If you do not have sufficient cash immediately available, increasing your residential mortgage may be an efficient way to raise the cash to make the deposit.
• The expected rental income (net of letting expense) will determine how much the buy to let mortgage lender will be prepared to lend against a buy to let property. Buy to let mortgage lenders will usually expect the net rental income to exceed the mortgage interest costs by around 25%. You will need to consider all the various costs associated with a buy to let, for example, letting agent's commission, insurance costs, maintenance costs, service charges etc.
• Generally, buy to let mortgage lenders will expect you to use a professional letting agent to manage the property.
• You are most likely to be required to enter into Assured Shorthold Tenancy contracts with your tenants each for a year at a time. These contracts are considered long enough to reduce the risk of rental gaps. There are also short enough for the buy to let mortgage lender not to have an unreasonable delay to repossession (tenants can only be removed at the end of the tenancy agreement even if you do not keep up with payments against your buy to let mortgage).
• The buy to let mortgage lender may also be concerned about the type of tenants that you intend to attract. For example: many buy to let mortgage lenders will not allow students or DSS assisted tenants. Availability of the right sort of tenant for the lender may influence your choice of investment area or property.
• You may also be required to take out insurance cover to protect the rental stream in the event of a defaulting tenant.
• Other factors that may be relevant to some buy to let mortgages include: your income; your credit record and the ease of being able to resell your buy to let property.
Buying a property to let can give you a handy additional stake in the housing market and help diversify your investment portfolio. As with the investment choice, funding your buy to let can be complex. Let an expert find the best buy to let mortgage for you: Buy to let mortgages enquiry
