Buy To Let
Hot Topics
- What Exactly is a Mortgage?
- A mortgage is basically a loan – a loan that is secured on the value of a property which you pay back over a given period of time.
- Can I Take A Break From Making My Mortgage Repayments?
- The ability to take a break from mortgage repayments is a feature of the Flexible, Current Account and Offset mortgages.
- How Do I Switch Mortgages?
- Switching mortgages (remortgaging) has been made very easy by the industry, in reaction to the fact that most people remortgage their homes on a regular basis i.e. every 5 years on average.
- Equity Release
- Equity Release is a means of using the value of your home to receive either a lump sum of cash or regular monthly instalments.
- What if I have mortgage arrears?
- If you have mortgage payments that have not been made by the due date in accordance with the mortgage deeds, you will have gained a bad credit history on your credit report. This may hinder you when trying to obtain further credit such as a credit card, loan, or another mortgage.
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.
