Buy to Let Mortgages UK background - Its important to understand how much you can afford to borrow. Typically the deposit for most types of  buy to let mortgages required by property mortgage lenders are around 15% to 20% of the property value as a rule of thumb. The other key indicator is whether or not rental income exceeds mortgage repayments by 130% over a period. The affordability calculations used by lenders also build in rental void periods, so your personal income may also be a factor in your mortgage application following your buy to let mortgage quote.  In situations where you LTV is too small, mortgage lenders may insist on adding on the inclusion of  a mortgage indemnity guarantee.  Your total budget should also include initial voids before finding your tenants and repair, renovation and decoration costs as appropriate. There are many other letting expenses to consider before income is generated; for instance surveyors, valuation, searches, stamp duty, letting agents up front fees, conveyancing fees and accounting costs.

 

buy to let mortgages rates vary accordingly to risk - there are a myriad of lenders to choose from with all types of mortgage features - fixed term, variable, flexible, current account mortgage among many others... its a highly competitive area of the uk property market. Interest only mortgage have become popular as a greater proportion (relative to capital repayment mortgage) of the regular repayment is interest which is allowable against tax on rental income. Clearly the capital must also be repaid over the long run. Lenders tend to charge around 1% more than residential mortgages due to the perceived risk of buy to let uk lending.

 

Buy to let re-mortgage is a process of switching form your current mortgage lender to another to achieve a better uk mortgage rate - its possible to reduce your short term monthly repayments but be aware of any 'admin' application costs or additional costs that are not promoted as loudly as the discounted savings on your rate. Re-mortgaging can be useful to raise equity against the property as well. Its vital you understand the fine print before committing to a mortgage - always seek the professional financial advice of an FSA accredited IFA who can help you find the right product for your individual needs.  Remember that if you do not keep up payments on the mortgage secured on it you property is at risk.  IFA’s can assist you in contacting mortgage organisations and completing complicated  mortgage application forms as well as shopping around for an appropriate and competitive residential home loan quote.

 

They are best placed to advise on all property mortgage products currently available in the marketplace. Bear in mind, they are not trained to advise on buy to let investments per se. You could contact lenders directly. Tied agents are paid by life, pensions or insurance companies to sell you their products. Financial internet portals are an excellent way to compare like for like property products in terms of rates, features and background information for your mortgage.

 

There are many mortgage choices..   the longer the term, the smaller the payments will become, but the overall cost including interest will probably be higher.   Repayment types include standard variable rate SVR, discounted, fixed rate or capped mortgage.  If you choose an interest only mortgage it will be your responsibility to pay into some form of investment scheme to esnure the capital is also repaid at the end of the mortgage loan term.