House Purchase for Investment
If you intend to buy a property so that you can rent it out, you will need a ‘buy to let’ mortgage. The ‘buy to let’ mortgage will normally be secured against the property to be let, but on very rare occasions a second charge will be secured on your main residence.
The amount you can borrow is normally dictated by a number of variables but is strongly linked to the amount of rental income you might expect to receive.
‘Buy to let’ mortgage lenders differ in approach. For example, one ‘buy to let’ mortgage lender may require the projected rental income to be 30% higher than your mortgage payment. Another lender may require the projected income to be 10% higher than your mortgage payment. This is to allow surplus rent to cover other costs such as maintenance to the property and periods when there are no tenants living in the property.
It is important to employ an agent to look after the property for you. There are so many pitfalls for the Landlord, and the cost of getting it wrong can be very high.
Call us now and speak to our mortgage experts who can advise you on the right deal for you.
