At Barrett Mortgages we have some excellent advice to give to people who need it. We can help you get a buy to let mortgage that will suit your circumstances perfectly. We will source from a suite of lenders and compare products to ensure you have the best mortgage that suits your individual circumstances. We understand investors need to maximise on income and ensure the right product to help you grow your investment portfolio of properties. A lot of people left the market in 2008 and a few have limped on ever since, realising that being a landlord is often quite demanding. There is still a place for serious buy to letters out there who can work and think strategically to build up a business.
For a rental property, you cannot use a conventional mortgage or insurance. If you scrimp on this the bank might call in its mortgage altogether. A mortgage for rental property will typically have a much higher interest rate than a residential mortgage. This shows that banks are still interested in lending to serious investors who can put down a higher percentage of the value of property themselves. One aspect of the buy to let mortgage that makes life easier for the purchaser is the fact that they are often interest only. This means that each monthly repayment covers just the interest payment and not the loan capital. At the end of the agreement, you can repay the capital by selling the property and the seller can retain any profits.
The bank will see the borrower as a business partner, one which it hopes will be fit, healthy and alive towards the end of the agreement. You will need a viable business plan to get on the good side of the risk-averse banking sector. Are you targeting young professionals, students, married couples or commuters? If you don’t have a niche market in mind, you need to get one before you go any further. This is because it will determine where and what you buy. There is no point buying a flat for wealthy young professionals in bedsit land, or a property aimed at families in a row of student houses.
You will also be responsible to the local authority as well as the bank, rental property has to reach basic levels of safety, hygiene and energy efficiency. It might be worth consulting your council’s housing department for further advice on your legal requirements before you proceed. It is always good to keep in mind that your property will also be liable for council tax payments, a cost that most landlords pass onto their tenants.
We are a professional finance broker with offices in Poole, Dorset. Providing mortgages for everyone. A lot of people are fed up with the high pressured sales tactics of large corporates, we are here to do the exact opposite so you don’t feel pressured at all to do anything. Barrett Mortgages was founded by Darren Barrett in 2009, during some of the hardest market conditions the industry has ever seen. All of our staff are fully qualified, experienced and chosen based on their keenness to provide the best possible experience for our customers. We promise no pushy hard sales tactics and have built a strong reputation which is important as we rely heavily on referrals from clients.
Are you interested in our advice? Why not get in contact with us to find out exactly what we can do for you!