Buy
to Let Mortgage
The
Market
With
present low interest rates, there has
been a real boom in private individuals
and companies purchasing property as
an investment in order to rent it out.
The rental income can cover mortgage
repayments or even give you a regular
income while the value of the property
rises. Some people consider a buy to
let mortgage as a potential investment
to take the place of a retirement fund.
Ensuring
that you have the most competitive mortgage
for your needs is vital to making a
eturn on your buy to let mortgage -
we do our best to help you get the best
buy to let mortgage dealt.
Can
I get a mortgage?
Yes.
We have a number of special advisors,
who will find you the most competitive
mortgage, leaving you free to make your
own arrangements for renting out the
property without going through an agent.
How
much can I borrow?
The
amount can ranges from £100,000 to £1m
per property, and lenders will typically
advance a maximum of 85% of the property
price. Some lenders say the rental income
must be at least 125% of the mortgage
payment. Others will lend a multiple
of your salary, say three times, plus
half the rental income.
Interest
rate?
Most
borrowers for Buy-to-Let prefer Fixed
or Capped rate mortgage so that can
plan their income and outgoing's better.
At one time lenders charged commercial
rates on loans taken out to buy property
to let. Since more lenders have entered
the market, who are prepared to lend
for Buy to Let properties. So the interest
rates only slightly higher than ordinary
home loans. With the present low interest
rates more and more people are attracted
to enter the Buy to Let market.
More
than one property?
Some lenders will only lend on one property;
others limit you to 2, 5 or 10, and
some may have ar limit on the overall
amount you can borrow.
Tax
Relief ?
Yes,
you can offset interest payments on
your mortgage against tax on rental
income, along with other expenses such
as agents' fees and maintenance costs.
Still
interested? If so read our 3 step plan
on getting your best buy to let deal.
1.
Location, Location, Location
- Find
the most suitable property is in an
area suited to letting.
- You
can consult the Association of Residential
Letting Agents (ARLA) who will provide
help and advice on regulations and
rent levels. Contact ARLA on 01923
896 555.
2.
Financial advice
- Check
how much your can borrow (normally
around 80% of property value)
- You
will need a substantial deposit
- As
a guide your rental income should
cover at least 125% of your monthly
mortgage payment.
3.
Do your Sums
- Compare
your monthly mortgage payment and
look around at the average rental
rates in your area. This will give
an indication of whether the buy to
let option is a distinct possibility.
Why not discuss you requirement with
one of our advisors will help you to
decide if what is the right for you
and your business.
Call
now at: 08451 30 40 92/3 to book an
appoinment.
Or
just complete a short enquiry form now.
