About Buy-To-Let Mortgage
Are you an old or a new landlord or still aspiring to be one?
Buy-to-let mortgage provides a lot of options that can suit your needs. This allows you to borrow money to buy a property to let it out to tenants
Buy-to-let mortgage simply means, getting a secured loan for buying a property to rent out to tenants. In a buy-to-let mortgage, a larger deposit is needed and the interest rate is high.
How Much Deposit Do I Need To Pay?
The bigger the deposit, the better the rate. The least can be 20-25% of the value of the property. Best deals can be 40-45% and above, depending on your affordability.
Frequently Asked Question
Works in Several Ways, which are:
- It can either be a capital repayment basis, that is, a part of the loan and interest is paid on monthly basis
- It can only be on interest basis, whereby at the end of the mortgage, the cash from the sale of the property is used to pay the outstanding loan
- Some allow the house owner to use the sale of the property only to payback
- Be above 21 years of age
- Buying a property in England, Wales, Scotland
- Minimum amount that can be borrowed is 25000
- A UK resident for at least 3 years
Tips To Know On Buy To Let Mortgage
- Be careful of the pitfalls, by making sure to know the total sum of your affordability before going for it
- Buy a property that will be attractive enough to your future tenant, especially when it comes to students or young families
- A right location is also the best to look into. One with a valuable property might not be the best, weigh your options and consider a wide range of factors
- Put into consideration payments of tax on gain in the value of your property
- Consider other fees, like agent fee, especially when an agent issued to manage your property. If the cost of an agent outweighs, it might be best to maintain and manage your property yourself
- Then shop around for mortgage, don’t be in a hurry to get a mortgage, weigh your options properly
Get in touch with us today to help you get a good competitive rate. Now might be the time to consider a buy-to-let mortgage