Buy to Let Mortgages

If you are intending to buy a property to let out, then you will
need to take out a specialist mortgage.
The amount you will be expected to put down as a deposit will
depend upon the broker you intend to use, however, it is fair to
assume that you will need to put down between 15% and 25% as a deposit.
Given the general growth within the buy to let market, there
has also been a general shift within the financial lending
market to accommodate this move. In the past, the only real option
for landlords was to take out a commercial mortgage, which were
far more expensive.
Today, however, buying to let a property is no longer the preserve
of the business entrepreneur, and many families opt to buy a second
home to let out as a second income, leading to an increase in
choice for consumers.

Many banks now offer the opportunity to take out more than five
mortgages for buy to let properties, if they are comfortable with your
ability to successfully manage the properties.
Given the inherent higher risks involved with choosing to buy a
property to let out, buy to let mortgages inevitably work out slightly
more expensive than a traditional high-street mortgage.
The amount of money you will be able to lend will depend upon the
mortgage lender you choose.

The amount you can lend may be based upon:

• Your current income.
• You’re current income plus the amount of rent your lender
calculates that you can add to your
current income through the property rental.
• The rental income from the property only.
Evidently, depending upon your financial situation, it is always a
good idea to compare lender deals before signing any buy to
let mortgage contracts.

It is also very important to consider any relevant tax implications,
as any interest you pay on your mortgage can be offset against tax,
though capital payment cannot. Consequently, it may be to your
advantage to apply for an interest only mortgage. Of course,
if you are eager to pay off the outstanding mortgage, then you
should always opt for a repayment mortgage.