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Buy To Let -
Buy to let mortgages are where an investor purchases a property with the intent of letting out the premises.
The property could range from a one bed flat to a large house for multiple occupancy though not all lenders will be willing to consider this type of property. Some property types are more desirable to lenders than others so if you are new to the market it may be worth checking with a Buy to Let specialist such as Landlord Mortgages as to the most popular types of property in order to get the best deals to choose from.
Mortgages are available for most buy to lets but the majority of lenders will only lend up to 85% loan to value and some have a limit on the number of properties or maximum amount of borrowing a borrower may have with a lender.
Rental income is the criteria many lenders use to assess the amount of mortgage they will lend, as this must exceed the cost of the mortgage repayments. Different lenders have different calculations from 100% to 125% of the interest only monthly payment.
A property bought for multiple occupancy is known as an HMO and investors buying these types of properties will have to obey the rules and regulations set out by Law to protect the tenants i.e. fire doors and exits. Failure to do so can result in heavy fines.
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