| A buy to let mortgage is a type of mortgage | | | | Before you think of buying a property for |
| loan obtained to buy a property. The property | | | | letting it is very important to consider |
| is obtained to be let out by the buyer. | | | | every single detail before you buy. The |
| Sometimes a buy to let bridging loan will be | | | | common return on a buy to let property varies |
| necessary if the mortgage cannot be obtained | | | | between 7 and 10 percent. This is the return |
| quck enough or you are in the process of | | | | after all expenses have been deducted from |
| selling a house. | | | | the gross income generated by a property of |
| | | | course. The average rent that should be taken |
| With this type of mortgage you would | | | | by a property owner should be about a 120-130 |
| typically pay mortgage interest only and can | | | | percent of the mortgage repayment. This is |
| be used for up to 85% of the estimated value | | | | the standard minimum rent payment that should |
| of a property. A buy to let mortgage sum is | | | | cover all your costs. |
| allowed to be spent on the purchase of more | | | | |
| than one property and with this type of loan | | | | A professional letting agent will be able to |
| (after paying interest every month) you pay | | | | advise you on the best buy to let mortgage |
| off the rest of the mortgage sum if you | | | | plan available for you. There are slight |
| eventually sell the property. | | | | differences in interest rates and the small |
| | | | print on the loans on the market. A letting |
| Banks and investors want to expand and | | | | agent is also the right person to talk to |
| promote the private housing market. This is | | | | when it comes to releasing your property onto |
| why the policy that was maintained a few | | | | the market. He or she will know how to find |
| years ago (charging those who buy a property | | | | the right people to rent your property and |
| to create income for themselves a higher | | | | will be able to sort out all the details with |
| interest rate and lending fee) has been | | | | your prospective new occupants and they |
| changed significantly. Only paying interest | | | | understand the market when it comes to |
| on a mortgage loan helps to keep expenses at | | | | pricing. Knowing the area in which you are |
| a minimum so that the owner of the property | | | | purchasing a property is the most important |
| (the landlord) can earn money on his | | | | factor when it comes to buying to let. If you |
| investment. However, buy to let mortgages do | | | | don't know your area you might end up with a |
| usually have a slightly higher interest rate | | | | property that people simply do not want to |
| than normal mortgages. | | | | live in. |
| | | | |
| A buy to let bridging loan can turn out to be | | | | Buying properties to let and making money |
| very expensive if you do not pay it off | | | | from it can be a lot of fun if you know how |
| quickly. Before you go ahead and commit | | | | to pick your properties and if you find the |
| yourself to such a loan make sure you can | | | | right buy to let mortgage plan. Find a |
| answer whether you really need this property | | | | property with the right price and research |
| and is it worth it and can you pay it off | | | | the potential of the property and get a |
| quickly. Like all products and services they | | | | mortgage plan. Check if the home needs new |
| are there for a purpose. Just make sure one | | | | fixtures or any repairs before you can start |
| suits your trrue needs. | | | | letting it out and find the right tenants |
| | | | with or without a letting agent. |