Invest With A Buy To Let Mortgage
Back in 2008, the market was flooded with lots and lots of landlords, this was because of a super cheap market between 1997 and 2008. Once they realised that being a landlord wasn’t as easy as they first thought and was quite often demanding. There is still a place for serious buy to letters who can work and think strategically to build up a business. The buy to let mortgage is a different kind of finance to a residential mortgage and if you switch a residential home into a rental property you must switch mortgages as well. If you fail to do so, the lender can call in its mortgage altogether. A buy to let mortgage will have much higher interest rates but one aspect of the mortgage that makes it much easier for the purchaser is that they are normally interest only. This means that you will only have to pay the interest on the property and not the loan capital. At the end of the agreement, you can repay the loan capital by selling the property and any profits can be retained by the seller.
This is why you will want to make a good investment purchase as well when you first take out the buy to let mortgage; Otherwise, you could sell the property for less after the agreement has ended and still owe money to the lender. This shouldn’t be too much of a worry for you as the bank wouldn’t lend you the money if they thought you would make a poor investment decision. When you have the property you aren’t just responsible to the bank, you are also responsible to the local authority as well. A rental property must reach the 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.
More About Invest With A Buy To Let Mortgage
Barrett Mortgages is a professional finance broker with offices in Poole, Dorset. Providing mortgages for everyone. Are you fed up with the high pressured sales tactics of large corporate? We promise no pushy hard sales tactics and have built a strong reputation which is important as we rely heavily on referrals from clients. Barrett Mortgages was set up by founder Darren Barrett in 2009, 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.
If you are interested in our advice and help please make sure you get in contact with our team.