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Looking for the Best Buy to Let Mortgage Deals

A buy to let mortgage is a mortgage that you take out to buy a property for investment purposes, rather than as your main home. The market for investment property appears to remain active at the moment as many people cannot afford to buy and so are renting instead.  However, following the credit crunch, buy to let mortgages are not as easily available as they once were. Therefore, investors have to work hard to ensure they get the best buy to let mortgage deals.

A buy to let mortgage is different from a standard owner-occupied mortgage and will have different criteria and terms. A buy to let mortgage is specifically designed for property that you intend to receive income from in some way.

To calculate how much you can borrow for an owner-occupied property, lenders will normally use a multiple of your annual income. For a buy to let mortgage, the amount the bank is willing to loan will be based on factors such as the value of the property and the amount of rent you expect to receive, as well as the deposit that you are able to offer. You will probably need a comparatively higher deposit for a buy to let property.

The fees and interest rates on a buy to let mortgage are typically higher than they are for an owner-occupied mortgage.  This is because banks perceive the risks to be greater for this type of mortgage. For example, if you are unable to find a tenant for the property for a period of time, which is not an unlikely scenario, you might find it difficult to meet your mortgage repayments.

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