11:08 19 June 2013
Buy to let properties are great options for people who want to generate income by renting the property that they want to buy to other people. When investing in this type of property, a buy to let mortgage becomes important.
The three main factors used by lenders to determine interest rates and repayments are rent potential, sources of income, and deposit. Lenders will want to make sure that the property is attractive to renters so you will not have any problem making repayments. They will probably also require at least 20per cent down payment.
When looking for the best buy to let mortgages, the first thing that you need to consider is your income and the property’s rent potential. You need to consider how to handle your repayments if the property is not occupied for months. After assessing your income, contact a broker and talk about your best options based on your unique situation.
Keep in mind that the lenders will determine the amount that you can borrow based on the amount of down payment you offer, the actual price of the property that you want to buy, your income, and your existing debts that include repayments of your existing home, if you have any.
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