Best Buy-To-Let Mortgages
Best buy to let mortgages
Buy to let mortgages - loans used to purchase residential properties to let for profit - surged in popularity over the last decade. Whilst the economic downturn reduced choice somewhat, rental demand is bouncing back and more and more buy to let mortgage options are appearing.
If you are looking for this kind of loan, you can make a quick buy to let mortgage comparision using one of the numerous mortgage comparison websites. These will indicate a good range of the best buy to let mortgage rates, although it will probably be worth visiting a mortgage broker to see whether there are even more of the best buy to let mortgages available, as the lending marketplace is changing on a daily basis. If you use a broker, ascertain when and how they will charge for their service, which may be by fee, commission, or a combination of the two.
The amount investors can borrow is determined by the rental valuation of the property, although the applicant’s income and other financial commitments are often taken into account also. Normally the rental income must cover the mortgage payments, maintenance of the property and void periods, the latter being when no tenants are living in the property. With all these variables it is important to try to obtain one of the best buy to let mortgages as one that is less than ideal could mean the difference between success and failure as a buy to let investor.
The best buy to let mortgages in the UK will typically be a bit higher than those for conventional residential mortgages and will incur higher fees due to lenders perceiving them as a slightly higher risk. However, buy to let mortgages offer tax advantages as landlords can deduct costs from rental income, including maintenance costs and mortgage interest.
It is important to thoroughly research any buy to let proposition: while a buy to let landlord may benefit from rental income and the property gaining increased equity, there is also the possibility of the property’s value reducing, higher maintenance costs than first envisaged, increased lending rates and struggles to find tenants.
By Ben West