Property is big business and many people today are considering renting out a property in order to get extra income and to have an investment for the future. If you would like to be a landlord you will need to get a mortgage on the property that you intend to rent out and this type of mortgage is known as a buy to let mortgage.
There are still lenders actively looking to lend in the buy to let mortgage market however, in recent months the maximum loan to value has gone down from 85% to 75%. We have also seen a more conservative stance being taken on lenders rental requirements with most lenders requiring 125% of interest payment covering by the rent.
A buy to let mortgage is often a repayment mortgage where the repayment is met by the rental money with funds left over to act as profit, or for the owner to put aside for upkeep of the property or other costs. However not all buy to let mortgages are the same and it is important that you get the best buy to let mortgage that you can.
How to get the best buy to let mortgage
There are different ways in which you can find the best buy to let mortgage which include-
Speaking to lenders to find out if they offer a buy to let mortgage and then having them explain the features to them. This can take some time and you may be subject to the hard sell by the lender trying to get your custom.
Visiting different lenders websites and looking at the information contained on it to see if there is a good buy to let mortgage deal available. This too is time consuming and you still may need advice.
Visit an online mortgage broker who has a range of mortgage calculator tools and comparison tools to help you to find the best buy to let mortgage.
Speak to a trained mortgage advisor who can offer help and support when finding the very best buy to let mortgage to suit your needs.
If you feel that you would like to know more about buy to let mortgages then speak to an independent financial advisor who will be only too happy to help you. So if you are wondering which type of buy to let mortgage is best for you contact a financial advisor and get advice from the experts.
