Buy to Let
As a private landlord a buy to let mortgage can facilitate a business opportunity in renting out property. The fact that you will be making an income from your property can often assist in acquiring a loan in the first place. Also the potential of growing the value of your property over the term of the loan means that a buy to let mortgage can be seen as offering an investment opportunity.
A lender will often base the decision to lend on your buy to let mortgage based on the rent you will receive from a tenant; although sometimes rental income is not taken in to account.
The interest rates are often higher for a buy to let mortgage.
The lender normally asked for a higher deposit value often the least amount being 25% of the property's value, occasionally lower.
Another consideration is the tax implications of a buy to let agreement. This is certainly something that you should discuss with your mortgage adviser as declaring costs such as mortgage interest, maintenance and management service fees will reduce the amount of tax required on your buy to let profits.
Buy to let mortgages can be complicated and there are bound to be other aspects that are not covered in this short article. So please get in touch with us so we can keep you up to date with all the elements of a buy to let mortgage.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.
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