Buy to Let Mortgages
Buying to let has never been so popular. More and more people
in the UK are buying into property as both a long term investment
and as a source of income. An eye for the right property can
mean a solid investment alternative or complement to pensions,
shares and other investments.
If you have substantial equity in your own home, you may
be able to look at remortgaging this and so obtain the funds
to take out a buy-to-let mortgage.
Lenders take different approaches. Some will base the mortgage
on your income in addition to the amount of rent they estimate
can be obtained.
Others will base the loan purely on the rental. The formula
they use will also vary. Typically a lender will require the
rent to be at least 125% of the mortgage payment. Others will
offer a three times' salary multiple and half the rental income.
Again, because of the tax implications, obtaining advice
is necessary for those who are new to the market. Any interest
you pay on a mortgage can be offset against tax, but capital
payments cannot. This means it can make sense to have an interest-only
mortgage, even though these are often not viewed as favourably
as repayment loans.
Get the individual, professional advice you need and the
best mortgage deal for you, with no obligation, from one of
Mortgage Searcher’s leading experts.
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