Before you rush out to buy a second property, make sure you do your research first. You need to make sure that you select a property in the right location. Not only that, you have to make sure that you choose a property that will suit your target market. So there is no point in purchasing a penthouse suite if you want to let it out to students!
Once you have decided on the property to purchase, you will find that many lenders offer specific mortgages for properties that are being bought to let. There are many types available - including both repayment and interest only - but what makes the products distinctive is the criteria lenders use to calculate the amount you can borrow.
This figure will vary according to the level of deposit paid and the expected rental income. Lenders require a larger deposit than they do for standard mortgages and will only lend if the rental income is 130% of the mortgage payments.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Please note that the FSA do not regulate some forms of Buy to Let mortgages.
Our rate:
6.29%
Overall cost for comparison is 6.8%
Our rate:
6.14%
Overall cost for comparison is 7.1%
Our rate:
7.19%
Overall cost for comparison is 7.5%