With our great advisors, we can source you a variety 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 you grow your investment portfolio. To have a buy to let a property you will need to have a special buy to let mortgage as you cannot use a conventional mortgage or insurance for your rental property. The mortgage for a rental property typically has a much higher interest rate. This shows that the banks are interested in lending to serious investors who can put down a higher percentage of the property. One aspect of a buy to let mortgage that can make it easier on the purchaser is that the mortgage can be interest only, this means that each month repayment covers the interest and not the loan capital. At the end of the agreement, the capital can be paid back by selling the property and the seller can retain any profits.
The bank will also want to see a good business strategy, they will see you as their business partner, one of which it hopes will be fit, healthy and alive towards the end of the agreement. If you are going into the letting business, you need to make sure that you have a viable business plan. Are you targeting 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 your niche will determine where and what you buy.
If you are interested in getting a buy to let mortgage and want more advice please get in contact with us.