BUY TO LET

Buy To Let in recent years has become an increasingly popular mortgage option for those wishing to invest in residential rental property.

However, some potential investors are put off entering the Buy To Let market due to the popular perception that buy-to-let mortgages are expensive.

Buy To Let - the story today
This popular misconception no longer holds true as lenders today are now offering increasingly competitive rates, which in many cases are generally not significantly higher than those on standard mortgages.

Landlords also have a choice between interest only and repayment mortgages. However, buy-to-let mortgages do differ in several important ways from standard mortgages.

A major difference is the criteria lenders apply when considering approving a loan. Buy-to-let mortgage lenders base their decisions on whether or not to approve a loan on the likely rental income from the property and not the applicants' income.

In order to secure finance, rental income generally needs to be at least 125% of the mortgage repayment.

Buy to Let Mortgages are not regulated by the Financial Services Authority

Your property may be repossessed if you do not keep up repayments on your mortgage

A fee of a maximum of £250 or 0.5% of the loan amount, if greater is payable on completion.  Typically this will be £250.