Advice For Buy To Let Mortgages

By: Michael Hatfield

A mortgage is the transfer of interest in property to a lender in form of a security as a debt, in other words, a loan of money. Mortgage in itself is not called a debt it is lenderís security for a debt.

So What are Buy To Let Mortgages?

Buy to let mortgages are on offer in UK from the late nineties. Such offers were especially designed for the investors to purchase property in private sectors. They were popular in UK over the last few years due to the continual increase in property price. Another reason behind their popularity is the tax advantages that were available to the buy to let investors in UK. These types of mortgages are so much popular in the country that in every 3 new properties in London, 1 is purchased by an investor.

Why Buy To Let Mortgages?

Buy to let is a form of investment that attracts investors who are looking for easy money-making opportunities. Over the last decade, buy to let mortgages have grown in popularity as in this case the property is considered a stable investment. Since demand for rental property is increasing in the cities of United Kingdom such as in Bristol, some socio-economic factors like rising divorce rates, increasing population, and an inclination towards single occupancy are giving rise to a thriving rental property market.

How to Make the Most of the Best Buy To Let Mortgage Offers:

1)Understand your objectives.
2)Measure the urgency needs and other priority cases.
3)Work only with those mortgage providers who can be contacted when you need them.
4)Lender processing experience helps with difficult cases.
5)Opt only for that mortgage plan that provides specialist help.
6)For those planning to go for a buy to let mortgage, it is necessary to have a 25% deposit and have sufficient balance to invest in a buy to let mortgage plan.
7)The property you buy must cover 125% of its monthly mortgage payments in rent.
8)There are some lenders who accept 115% but these increasing rates bring a sense of insecurity to the lenders.
9)Like any normal mortgage policy, in buy to let mortgages too, the larger is the deposit the smaller is the loan value.
10)Source your mortgage from the market by availing a buy to let mortgage.
11)Last but not the least, to enjoy a good mortgage service you should take the services of an expert mortgage advisor.

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Michael Hatfield offers some important advice on buy to let mortgage.

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