Buy to Let Mortgages explained - Apply for a Buy to Let mortgage

Buy to Let mortgages explained - Apply for a Buy to Let mortgage

There is very little difference between a buy to let mortgage and a traditional mortgage except a buy to let mortgage is taken in the assumption that income from rent will be used to pay back the mortgage. When it comes to buy to let mortgages there are two main types you will need to choose between - a repayment mortgage or an interest-only loan. With an interest only mortgage, lenders are often looking for a suitable investment product, while with a repayment mortgage, some lenders may ask for life insurance in conjunction with your loan.

Other options include fixed rate and variable rate mortgages. A fixed rate loan should provide you with some certainty about your monthly repayments whilst variable mortgage rates can change from month to month.

Property Advice Blog Top Tip!

When choosing a buy to let mortgage, take some additional sound property advice from an independent adviser or mortgage intermediary, in order to help you consolidate your ideas.

Apply for a Buy to Let mortgage

If your ready to proceed with a mortgage application and would like a no-obligation free quote from a fully licensed Mortgage Broker, complete the mortgage comparison form below right now to find out who can provide you with today's lowest possible rates.

This is a free mortgage comparison service from Property Advice Blog. We use Secure Server Technology for all our online form applications so your personal data is absolutely safe with us!

Apply for a buy to let mortgage

What are the additional costs of a buy to let mortgage?

In addition to monthly mortgage repayments you could also have to pay for:

• Building insurance
• Content cover for furnished properties
• Maintenance costs
• Dry periods when you don’t have tenants.
• Extra rent if tenants fall into arrears.
• Interest rate growth and related mortgage repayments.

Questions to consider before choosing your mortgage:

• Have you received advice from a variety of mortgage consultants?
• Have you thought about how rising interest rates could affect you?
• Do you have enough savings or income to pay for tenants who leave, rent arrears or if the property is empty?
• Is the mortgage affordable and will I be able to pay it in the long term?

When it comes to buy to let mortgages we recommend you consider all of these questions before you sign a contract. In addition you should get independent tax, legal and property advice from qualified specialists who can help you to see all the disadvantages and benefits of this investment method.

Can I change my current mortgage to a buy to let?

As the property market struggles many people are choosing to rent out their property and rent elsewhere to meet their changing needs. In order to rent out your property you will have to change from a normal repayment mortgage to a buy to let mortgage. While mortgage brokers are usually happy for you to do this, you may incur a fee or a higher rate of repayment; so do your research, and compare remortgaging to buy to let quotes.

What are the advantages of buy-to-let?

• Benefit from rising property prices
• Regular income/return from rent
• Pay off the mortgage with rent money
• Long term investment
• Rent out an existing property while you relocate
• Avoid problems associated with selling a house in a lagging property market

What are the disadvantages of buy-to-let?

• You will have to pay stamp duty, solicitor’s expenses
• Ongoing costs of property maintenance
• Property prices may not rise
• Have to consider mortgage repayment if property not occupied
• You must contact your mortgage lender to gain permission to rent your home out – this may result in them charging fees

Top tips for choosing a buy-to-let property:

• Choose a promising area
• Consider who you will be letting to: Families? Young couples? Students?
• Choose a property type and location appropriately
• Don’t overstretch your budget

If your moving home and are looking for a Conveyancing Solicitor then click here