Thinking of purchasing a buy to let? There is lots of space for serious people who want to let out a property. Lots of people left the market in 2008 after realising that being a landlord was quite demanding. With a buy to let property, you cannot use a conventional mortgage or insurance as you need to get a mortgage specifically for letting a property out. These types of mortgages generally have much higher interest rates, but the loan to value percentage is much higher and therefore this shows that lenders are interested in lending to serious investors. One aspect of this mortgage that may make it easier for the purchaser is that the mortgages are normally interest only. This means that monthly repayments only cover the interest on the property and not the loan capital. Then at the end of the agreement, you sell the property to pay back the loan and any profits can be kept by the seller.
When you take out a buy to let, the bank will see you as a business partner, one that will be fit, healthy and alive by the end of the agreement. You will also need to come up with a viable business plan to get onto the buy to let market. The bank will want to know who you are targeting, this could be a family, young students or wealthy professionals. This will then determine where and what you buy as you will need to purchase a property that will attract the people you want to fill your buy to let.
You will also have responsibilities with the local authority as well as the bank. A rental property has to reach the basic levels of safety, hygiene and energy efficiency. Before going any further it might be a good idea to get in contact with your local council for further advice on the legal requirements. At Barrett Mortgages we are a professional finance broker and we don’t just help to get you onto the buy to let market. We help with first time buyers, self-employed mortgages, Equity release mortgages and much more. We were founded in 2009 by Darren Barrett, this was during some of the hardest market conditions the industry has seen. The unparalleled, clear, trustworthy, honest and upfront service offered by Barrett Mortgages has meant our business has thrived during these times when clients have needed more individual and specialist help.
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 our clients.