If you want to buy a property and rent it out to someone to give yourself another income. When taking out a buy to let mortgage you have to take a few things into consideration. The mortgage is typically a much higher interest rate than a residential mortgage. This shows that banks are interested in lending to serious investors who can purchase a higher percentage of the property themselves. There is an aspect of a buy to let mortgage that will make your life easier for the purchaser and it is that they are often interest only. When you take out a mortgage with the bank they will see you as a business partner and will want to see that you are fit and healthy and will still be alive by the end of the agreement. The risk-averse banking sector will expect the buy to let landlord to take on a bulk of the liability. This means that if you are going into the letting business, you need to make sure that you have a viable business plan.
You will also have legal responsibilities as a landlord, you will have to maintain basic levels of safety, hygiene and energy efficiency. Before you begin the process of a buy to let mortgage you might want to consult your council’s housing department for further advice on your legal requirements before you proceed. If you would like any further advice on the kinds of finance available for fledging buy to let businesses speak to a financial adviser who deals in mortgage advice.
