Buy-to-let mortgages are for investors and homeowners who
want to buy into the property market, purchasing houses
specifically for the purpose of letting them out to tenants.
Not only is the owner able to benefit from capital value
appreciation of the house, but also likely to be better
able to maintain the property and realise much of his loan
repayment from the income from letting. There are two
contrasting sides to this buy-to-let phenomenon. It drives
property prices higher, as it has over the last few years,
while, on the other hand, it makes a broader range of
rental accommodation available for tenants.
Buy-to-let Mortgages are different from the usual home and
property mortgages, only so far as they specifically allow
rental income to be considered income contributing to the
ability of the buyer to meet mortgage payments. In almost
all other aspects, buy-to-let mortgages are quite similar
to standard mortgages - those issued for property that the
owner will live in. The percentage of the money that the
buy-to-let lender is likely to be willing to lend is
probably restricted to a similar 80% of property value,
while term may be in the general range of a minimum of
five, to a maximum of forty-five years. Another difference,
though, is that interest rates are much more likely to be
marginally higher than those charged for a similar standard
mortgage agreement.
When you are considering buying to let, it is important for
you to do some research about the market in which you are
planning to try and let your property. It is possibly
advisable to get some help from letting agents who may know
the area you wish to purchase in. They should be able to
advise you what the demand is currently for and what the
likely problem areas are. Through careful planning and
sagacious purchase, you are likely to acquire a property
requiring minimum maintenance that would be attractive to
prospective tenants.
Avoiding, or reducing void periods, the time between one
tenant leaving and another moving in, when you receive no
rent at all will likely be your primary concern after you
have acquired the house with the help of a buy-to-let
mortgage. Although these periods cannot be eliminated
altogether, any landlord would be wise to do all in their
power, beforehand, to try to minimise the length of any of
these periods. These days, specific insurance is available
that covers such contingencies. Speak to your insurance
provider to gather all the information you can about such
products.
A number of high street banks as well as various building
societies are offering buy-to-let mortgages, while
independent mortgage brokers can recommend mortgage
arrangements not available in general but more perfect for
your requirements.
----------------------------------------------------
James Grantworth is the Marketing Director for Let
Mortgages Limited, a company specializing in Buy To Let
Mortgages for the investor looking to build their portfolio
quickly & with the absolute minimum capital investment. For
full details of our no proof of rental income required buy
to let mortgage deals visit:
http://www.letmortgages.com/no-rental-income/
No comments:
Post a Comment