At Barrett Mortgages we are professional finance brokers and we can help you get onto the buy to let market. Our advisors will source 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 grow your investment. Our experts will understand your needs whether you are looking for that one-time investment or to build a portfolio. Many people left the buy to let market in 2008 after realising that it was often quite demanding being a landlord. But there is still a place for serious letters out there who can work and think strategically to build up a business.
For a buy to let property you will be looking at different types of mortgages than what you would normally get for a residential home. This is because you cannot use a conventional mortgage or insurance to buy a buy to let property. A mortgage for rental property will typically have much higher interest rates compared to a residential mortgage. The banks are interested in serious investors and that is why the loan to value percentage is higher. An aspect of the buy to let mortgage that can make life easier for the purchaser is that the mortgage can be interest only. This means that you only pay the interest on the amount that you borrowed from the lender and not the loan capital. You then pay back the capital at the end of the agreement by selling the property. Once the property has sold the seller can retain any profits made on the property and the loan is paid back in full.
A poor purchasing decision could leave you with negative equity, so making a good purchasing decision at the beginning of the agreement will benefit you when it comes to the end of the agreement. The bank will see the borrower as a business partner, one of which hopes will be fit, healthy and alive towards the end of the agreement. You will also need a viable business plan for the borrower to see and make sure you are making the right decision and what niche you are going to market to. This is what will decide where and what you buy. As there is no point buying a home for a family in a row of student houses or even a flat for young wealthy professionals in bedsit land.
When you own a buy to let property you are responsible to the local authority as well as the bank. This is because a rental property has to reach basic levels of safety, hygiene and energy efficiency. It is very much worth contacting your council’s housing department for advice on your legal requirements before you proceed. If you are fed up with high-pressured sales tactics from large corporate companies? We promise not to use these kinds of tactics as our team only has your best interests in mind. All of our staff are fully qualified, experienced and chosen based on their keenness to provide the best possible experience for our customers. We have built a strong reputation which is important as we rely heavily on referrals from clients.
If you are interested in any of our services please make sure you get in contact with our team.