10:34 02 September 2013
If you’re buying a property with the aim to make money by renting it to other people, buy to let mortgage is for you. Although the money you borrow will be used to buy a real estate property, keep in mind that buy to let mortgage isn’t the same as regular residential mortgages.
First, lenders will assess if they’re going to approve your loan application based on the potential rental income from a property and not based on your own personal income alone. Of course, they would want to make sure that you’ll make enough money from the property so you’ll be able to pay them back.
Second, interest rate on buy to let mortgages is typically higher compared to regular mortgage.
Third, lenders require no less than say 20per cent of the property’s value as down payment.
When looking for the best buy to let mortgage deals, it’s best to check with your current mortgage provider first.
Shopping around and comparing interest rates wouldn’t hurt as well.
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