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If your ambition is to purchase residential property for letting to tenants, then we would be pleased to talk to you about your best options. We can also arrange portfolio mortgages for multiple property ownership.
Buy to let mortgages are just a little different from the loan you would have on your main home, for example the amount you can borrow is governed not so much by your own earnings, but more directly related to the rental value of the property. Most lenders will want to see that there is a clear margin between the rent and the monthly interest cost of the mortgage, so that you have spare income to pay for other things (as well as perhaps to take a little profit). Generally a minimum deposit of 15% is required when you buy property, however better interest rates can usually be achieved from putting down a bigger deposit.
Whilst there are some positive factors in favour of buy to let property such as potential capital growth and rising rents in future years, there are several negative factors which you need to be aware of. For instance costs and labour for maintenance, management, insurance, the possibility of having no tenants for a while, rising interest rates, declining property values and taxation.
As well as assisting with new purchases we are well positioned to improve your terms on an existing buy to let mortgage.
Buy to let mortgages are not regulated by the Financial Services Authority
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