Buy To Let
Hot Topics
- What Happens If Interest Rates Change?
- If you have some form of fixed interest rate mortgage you will be unaffected by changes in interest rates. Otherwise you can expect a change in the rate of interest charged on your mortgage.
- What are 100% Mortgages?
- Most mortgage lenders will only offer a 90% loan to value, that means that they will only loan you 90% of the properties value. First time buyers find this particularly problematic because they need to save up there 10% of the properties value before they can complete on their mortgage.
- What are Self Certification Mortgages?
- When you apply for a mortgage, the lender will require from you proof that you will be able to maintain the mortgage payments, and do not present a risk of non-payment for the large amount of money you are borrowing.
- Commercial Mortgages
- A commercial mortgage is probably the best way to finance the purchase of buildings and land for business purposes, it provides the most flexible and affordable finance solution. Commercial mortgages are specialized due to the fact that the lender has a legal claim over the property until the loan has been repaid in full.
- What is Adverse Credit?
- If a borrower has a history of poor credit usage then this is described as Adverse Credit, Sub Prime or just simply, Bad Credit. Poor Credit history can include County Court Judgements (CCJ's), Bankruptcy, Mortgage arrears or any late payments on credit cards, credit arrangements etc.
What is a Buy to Let mortgage?
If you are buying a property with the specific intention of renting it out, you will need to get a Buy to Let mortgage. They have increasingly popular, and you can get these types of mortgages from most mainstream lenders following the revival of the rental market in recent years. The amount you can borrow is determined by the potential rental income of the property, not your personal income - and to get the mortgage you must be able to earn a rental income that exceeds monthly mortgage repayments of 25%-30%.
The maximum Loan to Value available on a Buy to Let mortgage is 85%, but in most cases you will also need a deposit of about 20% of the purchase price for a buy to let mortgage.
