Buy To Let
Hot Topics
- Types of Mortgage:
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Variable rates Mortgages: - mortgage payments are calculated by your lender on the so-called "Standard Variable Rate". This is based on the monetary "base rate" that is reviewed monthly by the Bank of England.
- How Much Is The Valuation Fee?
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The Valuation fee covers the expense of the mortgage lender visiting your prospective property to ensure that it is worth what you are intending to pay.
- Do I Need a Guarantor?
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If your lender is concerned about your ability to meet your mortgage commitments, they may ask you to provide a Guarantor.
- How Is Interest Calculated On a Mortgage?
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Interest is charged in different ways depending on what kind of mortgage you have.
- What Are Discounted Mortgages?
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Discounted rate mortgages take the lenders standard variable rate and apply a discount. By applying the discount it allows the borrower to reduce the interest rate on the loan for a set period of time.
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.
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