A Laymans Guide to Buy to Let Mortgages

The Buy to Let property market seems to moreLenders may require a higher deposit than the
popular than ever. In fact, Buy to Let has been steadilyaverage standard mortgage deposit - this may be as
increasing in popularity since the mid-nineties andhigh as 25% of the property value.
experts reveal that the market shows no real sign ofBuy to Let Intentions
slowing down. Buy to Let seems to be the idealAnother point to consider when looking at Buy to Let
property investment; simply purchase a property andMortgages is what the main reason for buying the
then let the tenants cover the mortgage. However,property is. This may sound a little strange as you are
there a number of things to be taken into considerationobviously buying the property to let it but people have
when buying a second property which you are notdifferent goals involved with their Buy to Let property.
planning to live in and one the most important one isHave a look at two differing goals of Buy to Let
buy to let mortgages.investors:oMake a profit from the investment in the
Buy to Let Mortgages Basicsproperty itself and re-sell it when house prices are
Buy to Let investment involves buying a property withhighoAim for a month by month profit from the rent
the intention of making a profit through letting. There isyou charge
an increasing amount of choice in the Buy to LetBuy to Let Costs
mortgage market and this is mainly due to the increaseRegardless of the reasons you might have for buying
in Buy to Let investing. The conditions for Buy to Leta property you will also need to consider all the extra
mortgages differ from standard mortgages as thecosts you may incur, some to consider are:oTax
intended purpose for buying the property are different.issuesoLetting Agency FeesoProperty
Some of the following differences should beMaintenanceoInsurance (building insurance, contents
considered before going ahead with a Buy to Letinsurance, home insurance, legal insurance)oFurnishing
mortgage and worth speaking to a specialist buy to letExpenses
mortgage about:oHigher Interest Rates - Buy to LetBefore making any buy to let property purchases you
mortgages usually have higher than normal interestshould always discuss your investment requirements in
rates.oRent - The lender considers your income perdetail with a Buy to Let mortgage broker. They can
annum, together with the amount of rent which will behelp maximise the potential profit from your property
charged when letting out the property.oDeposit -investments and normally their advice is free.