Buy To Let

Buy to Let mortgages are specifically designed for people who want to invest in the property market by buying houses and letting them out to tenants. The owner of the property benefits from the appreciation in the capital value of the house whilst the tenant benefits by having an affordable property to rent. Much of the repayment on the mortgage is covered by the revenue raised by letting, allowing the investment to grow year on year. The Buy to Let market has grown phenomenally over the past few years, pushing house prices up while still maintaining a broad spectrum of rented accommodation available for tenants.

Buy to Let mortgages are different from other schemes in that they specifically allow the rental revenue to be regarded as an income when considering the ability of the buyer to meet the ongoing mortgage payments. And with housing prices currently depressed and interest rates on mortgages at an all-time low, now is an ideal time to pick up an investment property. Buy to Let mortgages are very similar to standard mortgages. The percentage which the buy to let lender is willing to lend is likely to be restricted to 80% of the value of a property and mortgage terms range from five to 45 years in length. Interest rates may be slightly above the base mortgage rate, but they have still been affected by the current round of interest rate cuts and are now more affordable than ever.

If you are considering buying a Buy to Let property as an investment, it pays to do your research first. There’s no point purchasing a Buy to Let property in an area where properties have low rental values or little chance of finding tenants. Talk to a letting agent so that you can buy in the right area and maximise the occupancy times to ensure that you don’t have prolonged ‘void periods’. If the house is empty of tenants, it isn’t generating any income so your primary aim is to ensure that these void periods are as short as possible. Properties that do not require too much maintenance and are attractive to tenants are more likely to encourage continuous occupancy and therefore continuous income on your investment property.

Many high street banks and building societies are now offering Buy to Let mortgages. But by talking to us as independent mortgage advisers, we may be able to recommend mortgage arrangements that are not available on the high street and could strengthen your investment.

Call us now to discuss your Buy to Let mortgage requirements.