Buy To Let Mortgages

If you’re getting into the property market, you’ll know that finding the right mortgage is at least as important as finding the right property. While we can’t help you find the right property we can help you identify the best buy to let mortgage providers; and, just as importantly, show you what to look out for when dealing with brokers, lenders and letting agents.

The buy to let mortgage scheme was instituted by the Association of Residential Letting Agents (ARLA) and is supported by all the leading lenders and mortgage providers. What this means is that buy to let mortgages are no longer seen as commercial ventures overseen by property magnates and finance fat cats, but as a legitimate, fully sanctioned way for us regular Joe’s to make some significant investments. Buy to let mortgages are offered at lower rates than ever before, making the buy to let market a much more attractive investment opportunity for us all. It’s good for the economy too. A better balanced spread of rental and purchase property helps stabilise the property market, cancelling out boom and bust and ushering in sustainable growth.

Whilst it’s not a guaranteed instant ‘earner’ the buy to let market is an excellent way of cashing in on sustained capital growth and monthly income. Provided your rent charges are pitched at 130% - 150% above your mortgage demands (and provided this is appropriate for the property you’re letting) then you’ll hit a profit each and every month, even after payments for lettings agents, insurance, maintenance etc.

You’ll soon discover that not all buy to let mortgages were created equal! Rates, terms and fees vary enormously; fortunately they’re all instantly available online and tabulated for easy comparison. Just ask your mortgage broker or follow a few links. You’re looking for a match made in heaven – so think of your broker as your matchmaker – accept no substitutes!

Bear in mind too, that your buy to let mortgage suitability may be ascertained by virtue of your projected income, based on rent and any other earnings, offset against your existing mortgage commitments. You might also be required to make a more substantial ‘down payment,’ ranging from 10% up to 25% of the value of the property. That’s a big investment. So shop around; search out the schemes whose rewards are commensurate with that investment. And make sure you know exactly what each mortgage demands of you; not just monetarily, but in terms of how long you’ll be tied in and the potential for variable rises in payback rates.

That’s an important consideration: don’t forget that buy to rent mortgages are available in as many forms as conventional buy to occupy mortgages. That means they can be variously fixed or variable; capped, discount or cashback. Some mortgages will even follow the bank of England base rate, giving you a roller coaster mortgage and a potentially wild ride.

Even these sorts of decisions have been made simpler than ever thanks to the huge array of online assistance at your immediate disposal. These days you can find, buy and mortgage a property without ever even seeing it – if you really want to! Seriously, with online amenity searches and lettings agents at your disposal you can determine everything you need to know about the location and viability of your buy to let property. And with online mortgage calculators to do the work for you, you’ll be able to find the very best buy to let mortgage without any of the hassle normally associated with buying a house.

Getting into the property market is a whole lot easier with a little ‘leg up’ the ladder! Find out for yourself just how much help is available – and how high you can climb…