Buy To Let

 

Buying or Mortgaging a property to let can be a great source of income as well as a medium to long-term investment.

 

A lot more people see this type of investment as a way to secure income for their retirement. A buy to let mortgage allows you to purchase one or more properties and let them out to tenants.

 

Buy to let mortgages can be found at  extremely competitive rates and comprise typically of fixed and variable rate deals, although the number of deals on offer has shrunk over recent months.

 

Interest rates for a buy to let mortgage will usually be slightly higher than traditional mortgages.

 

Some buy to let mortgages are not regulated by the FSA

 

  

Long Term Investments

 

They will usually be about 0.5% above that of the normal standard variable rate. The interest rate can also be affected by the size of deposit you put down; the larger the deposit you put down the lower your interest rate is going to be.

 

A buy to let mortgage deposit is now a minimum of 25% on the property.

 

Buy to let mortgages are not usually offered through typical high street lenders.

 

Buy to Let Mortgages are a great medium to long term investment and can generate significant income.

 

 

  

Good Income Source

 

The potential rental income will need to be above your monthly mortgage payment. The percentage it needs to be over will depend on the lender.

 

Certain lenders have specific requirements and some will have restrictions on certain types of tenants.

 

Before committing to an investment loan such as a buy to let mortgage (sometimes called a ‘Residential Investment Loan’) it is advisable that you review not only your current but long term situation so that you are certain it meets your needs.

 

Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.


The guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK. Gower Mortgages is a trading Name of The ER Network Limited which is an appointed representative of Intrinsic Mortgage Planning Limited and Intrinsic Financial Planning Limited which are authorised and regulated by the Financial Services Authority.


Gower Mortgages is an appointed representative of Intrinsic [Financial/ Mortgage] Planning Limited, which is authorised and regulated by the Financial Services Authority. Intrinsic [Financial/Mortgage] Planning Limited is entered on the FSA register www.fsa.gov.uk under reference [440703/440718]