Buy to Let
Buy to Let Mortgages
A mortgage 4 you have helped many step onto the buy to let ladder, from buy to lets for business to investments. If you are based in the UK, and looking for a buy to let mortgage then you can apply for a buy to let mortgage here.
Buy to Let Mortgages are the type of mortgages that are designed for people who want to invest in the booming property market by purchasing one or more properties/houses and letting them to various tenants. Buy to Let mortgages have been growing more and more popular over the last 2 years, with a boom in the buy to let mortgage market. The property owner can then benefit from any appreciation in the capital value of the house itself. With todays rapidly growing market, appreciation is a great way of making extra income.
The property owner is also likely to be able to maintain the property and meet most of the repayment from the revenue appreciated by letting. The buy to let boom has sent house prices flying higher over the last few years whilst providing more rentable properties to meet the growing demand in the UK.
Buy to Let Mortgages have begun to differ from what came before by allowing the revenue from renting to be considered as an income when considering the ability of the buyer to meet the ongoing mortgage payments. Buy to Let mortgages are similar to standard mortgages for property which the owner will inhabit. The principle of a buy to let and a standard residential mortgage is the same. The percentage which most lenders are willing to lend is likely to be restricted to around 80% of the value of a property.
Buy to Let Mortgage Term
The term of the buy to let mortgage is likely to be somewhere in the region of 5 to 45 years. This period can/will be adjusted based on the size of the mortgage and deposit. Interest rates are also likely to be higher then that of a standard residential mortgage.
When buying to let any property it is important to know the market in which you will be trying to let your property. It may be worth getting help from a letting agent who knows the area, a well known letting agent is ARLA (Association of Residential Lettings Agents), aswell as knowing the demands for rentable accomodation.
The agent may also be able to fill you in on what the likely pitfalls will be, if not you should always research the area and the market first, or let A Mortgage 4 You help you today. Researching the area is an essential part of any buy to let mortgage, after all buying a property to let in the middle of nowhere is hardly going to appeal to those who cant drive, or have to utilise public transport. Always research first, find out as much as possible about the area in which going for a buy to let mortgage. Once you commit, your committed! so find out as much about the area as you possibly can, from tenant demand to any trends that may help you evaluate the areas suitability.
By planning with consideration, and purchasing carefully, you ought to have acquired a property which does not require much maintenance and appeals to the tenant market. You should also have taken into account inital void periods in which the property is uninhabited yet on the market for rent. When participating in a buy to let mortgage, insurance is always worthwhile to cover you in the times in which your buy to let property is not inhabited by tenants, therfore not providing any income.
Buy to Let Mortgage on the High Street
Many of the high street banks and building societies now offer a buy to let mortgage products, however some are more competitive then others, we do the hunting for you so you dont have too.. Independent mortgage brokers will also be able to recommend mortgage arrangements which are not available on the high street and which will more perfectly meet your buy to let mortgage requirements. Here at a mortgage 4 you we have access to the full buy to let mortgage market and can source you the most suitable mortgage today.
Did you know that buying to let mortgages become so popular in 2006 that 10% out of all mortgages taken were buy to let mortgages. The success of a buy to let mortgage is down to the increasing appreciation and popularity of buy to let. Property is a great way to invest money, with the stock market on a volatile level and with house prices on the rise, buy to lets are becoming more and more popular. The UK population is growing by the day, with this comes the greater demand for rental property, which leaves the landlords in a positive situation.
There are plenty of lenders in the market to cater for your needs. At present, buy to let mortgages are only available through intermediaries (mortgage brokers), although some high street lenders have talked about offering them directly to borrowers.
Here at a mortgage 4 you we have helped many clients arrange a buy to let mortgage with competitive interest rates as well as other added bonuses. If you are interested in buy to let mortgages, or would like to apply for one then fill out our enquiry form or call us on 0845 2 605 506.
This type of mortgage allows landlords to profit from tenants aswell as maintaining the mortgage repayments, and coming one step closer to owning the property, the mortgage market in this field is growing ever more popular with more and more lenders welcoming applicants interested in investment properties.
Interest Rates
Falling interest rates in recent years have made buy to let mortgages more affordable as well as appealing, a strong rental market has made this type of investment very prospective to those looking to jump on the buy to let train. In 1988 the Housing Act abolished security of tenure for tenants making it easier for landlords to evict non paying or problem tenants.
In 1995 ARLA launched buy to let. Prior to this date lenders charged commercial mortgage rates on Finance taken out to buy property to let. This is no longer the case.
FAQS
What areas of the UK do you offer buy to let mortgages?
We cover buy to let mortgages all over the UK, and across main cities such as London, Manchester, Birmingham, Bristol, Glasgow, Liverpool and every other town and city in the UK.
Are buy to let mortgages a worthwhile investment?
Yes, buy to lets have become more valuable over the past 1-2 years with the tenant demand increasing, more and more landlords are starting to see the benefits of the buy to let market.
Will having bad credit affect my ability to mortgage an investment property?
You will need to contact us for this matter.
