Buy To Let Mortgage Quote
Buying a property for letting to tenants is a long-term commercial investment aimed at earning profits from rental income as well as by future capital gains when the property is eventually sold.
The amount that can be borrowed will depend on your projected rental income, but the lending criteria are generally stricter than for an owner occupier. Some mortgage lenders may expect rent to be 30% higher than your mortgage payments. Also the maximum loan available is often limited to just 80% of the property value, so you may have to find a deposit of around 20% of the purchase price.
Although property has historically been regarded as a sound investment, it is not without some potential risks. Falls in house prices, rising interest rates, major repairs or long periods with the property vacant, can all reduce your rental profit and make your monthly mortgage payments harder to meet.
Another point to consider is that buy to let mortgages are not currently regulated by the FSA if less than 40% of the purchased property is used by the borrowers or their immediate family. This means that if you should have any complaints you will not be able to refer to the Financial Ombudsmen or seek redress from the Financial Services Compensation Scheme.
These notes are offered as a general guide only and do not constitute legal or financial advice.
|
Get a Mortgage Quote and Advice >>>
Fill out this form for impartial advice and a no-obligation quote.
THINK CAREFULLY BEFORE SECURING DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED AGAINST IT.
By submitting this form you are consenting to your information being passed to an associate of UK Property Shop who will contact you. Our service is free to you but to operate this service we receive fees from the organisations we refer you to. If the adviser intends to charge a fee they are obliged to disclose this to you before providing advice. |
|
