Are you looking for the best buy to let mortgage? We are a buy to let mortgage broker that can help you find the best products for your mortgage. We will understand that you need to maximise on income coming from your properties and ensure the right product to help you grow your investment portfolio. In 2008 a lot of people left the buy to let market after realising that being a landlord is often quite demanding. There is still plenty of space for serious buy to letters out there who can work and think strategically. A buy to let property needs to have a specific buy to let mortgage and insurance on the property. A mortgage for rental property will typically have much higher interest rates than a residential mortgage.
The banks are interested in lending to serious investors who can put a higher percentage of the property down themselves. One aspect of the buy to let mortgage that makes life easier for the purchaser is that the mortgage can be interest only. This means that each monthly repayment covers just the interest on the loan and not actually paying back the capital. You pay the capital back at the end of the agreement by selling the property and the purchaser can retain any profits made. A poor purchasing decision may leave you in negative equity if the market slumps.
The bank will see you as a business partner, one that will be fit, healthy and alive towards the end of the agreement. The risk-averse banking sector is no longer throwing money at house buyers and expects the landlord to take on a bulk of liability. This means that if you are going into the letting business, you need a viable business plan. You need to know who you are targeting, this could be 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 in buying a family home in a row of student houses or even buying a flat for wealthy young professionals in bedsit land.
You will also have responsibilities to fulfil to stay out of trouble with the local authorities. A rental property has to reach the basic level of safety, hygiene and energy efficiency. It is very much worth consulting your local council’s housing department for further advice on your legal requirements before you proceed. Our fully qualified and experienced staff will be able to help you and give you great advice on what the best ways to do this are.
We don’t just offer buy to let advice. If you are looking at buying your first property, we can give you some very helpful advice to give you the best chance at getting a good mortgage. Even if you are looking to release money out of your home we can help you with that. We promise no pushy sales tactics as our reputation is very important to us as we heavily rely on referrals from clients.
Get in contact with our team if you are in need of some advice when you are looking for a mortgage.