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|  | - Buy-to-Let Mortgages Buying property to let is increasingly popular. Low interest rates have made mortgages more affordable, and rental income look attractive compared with what you can earn on other investments.
Below we have tried to answer one or two common questions. If you have a further question please do not hesitate to contact us I want to buy property to let but can I get a mortgage? Yes.
What is special about a buy-to-let mortgage? The main difference is that the lender can take account of the rent you will earn, as well as your income from your job. Some lenders allow you to add the rent to your salary; others base the loan entirely on rent. Any mortgage you have on your own home will cut the amount you can borrow under the buy-to-let scheme. How much can I borrow? The maximum lenders will advance ranges from £150,000 to £1m per property, and they will normally only lend 75 or 80% of the property price.
How much of the rental income will the lender take into account? The formula varies. Some say the rental income must be at least 130 or 150% of the mortgage payment. Others will lend a multiple of your salary, say three times, plus half the rental income.
Will I have to pay a higher mortgage rate? Buy-to-let mortgages are generally slightly more expensive than ordinary home loans, but much less so than used to be the case.
Can I get a fixed rate? Yes, fixed and capped rates are often available from lenders in the buy-to-let market.
What if I want to buy more than one property? Some lenders will only lend on one property; others limit you to three, five or ten, and may have an upper limit on the overall amount you can borrow.
Will I have to pay an arrangement fee? Most lenders charge a fee, ranging from £150 to £500.
What sort of return might I get from rented property? Returns of up to 12 or 14% before costs, with an average of around 10%. But once you take into account the costs of buying, equipping and running the property, this comes down to around 7%.
Can I get tax relief on a buy-to-let mortgage? No, but you can offset interest payments on your mortgage against tax on rental income, along with other expenses such as agents' fees and maintenance costs.
Interested in moving into the property rental market...... ...then do so with a buy-to-rent mortgage.
Click here for more information or a ONLINE quote for a buy to let mortgage
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