Buy to Let Mortgage Tips from the Professionals!
Buy to Let investment can yield a significant profit if
undertaken in the right way at the right time and this is one of
the reasons that Buy to Let investment has become increasingly
popular in recent years. Low interest rates have made Buy to Let
mortgages more affordable, and rental income has seemed more
attractive than possible earnings on other investments. If you
are thinking of investing in Buy to Let then why not have a look
at some of our Buy to Let tips found below. Buy to Let Mortgage
Tips
*The Application - One of the main differences you will come
across when applying for a Buy to Let mortgage is that the
mortgage lender will take into account the rental income you
will receive as a result of the letting as well as your normal
income. Some lenders will consider the rent money on its own
whilst others will consider both the rental money and your
salary. *Interest Rates - A Buy to Let mortgage may be more
expensive than a standard mortgage. Generally Buy to Let
mortgage rates have decreased as the amount of Buy to Let
mortgages on the market have increased but on the whole the Buy
to Let mortgage rates are still higher than the standard
mortgage. *Deposit - Generally the amount of money required for
the deposit on a Buy to Let mortgage is higher than with a
standard residential one. On the whole the lenders will require
a minimum of a 15% deposit. It is also worth noting that the
more deposit you put down, the more competitive the proposed Buy
to Let mortgage deal will be. *Rental Income - Many buy to Let
mortgage lenders require that the projected rental income
exceeds the mortgage payment by a minimum of 125%. This amount
can sometimes go up as high as 150%. *Equity - If you already
have a mortgage on the property that you are living in, and are
considering taking out a Buy to Let mortgage on another property
then it is worth bearing in mind that you may be able to free up
some of the equity in your home to put down as a deposit on the
property you are planning to let. It could be worth raising this
with the mortgage broker you visit. *Profit - The biggest tip we
can give you on how to ensure that you make the profit you
require on your Buy to Let property is to regard the Buy to Let
adventure as a long-term investment. If you are looking to make
a quick buck then the Buy to Let market is not the one for you.
*Tax Relief - Although there is no direct tax relief on a Buy to
Let mortgage, you can offset interest payments on your mortgage
against tax on rental income, along with other expenses such as
agents' fees and maintenance costs.