Privately owned buy to let properties are primarily financial investments. They can be very successful and come with many advantages such as the potential to gain on investment and make a profit, as well as tax benefits.
Whether you’re a first time buy to let borrower or a seasoned one, it can still be a challenge because there is potential risk involved.
It’s important when you purchase this type of mortgage that it won’t be your permanent residence and that you intend to let it out to prospective tenants. Any buy to let mortgage will be officially registered on the property for the purposes of renting it out.
It is also important you don’t confuse buy-to-let mortgages with let-to-buy.
Whilst a buy to let mortgage works much like a conventional one there are key differences in the application process.
Although every lender has their own criteria, you will generally be assessed primarily on the viability of your investment. Lenders want to know the potential profitability of the property i.e. rental income.
As well as its potential, when considering your application lenders may be looking for:
- Higher deposits at 15% or above
- Any non-standard features that may require a specialist lender
- Whether you own any existing properties
- Income and if it’s from secured employment
- Rental income estimations
- Credit history
- Age
Remember buy-to-let mortgages are a business investment and should be a carefully considered one.
Mortgage advisors help borrowers understand their options and will also match them to buy to let lenders based on their personal circumstances. A whole of market broker will have access to high street lenders right through to specialist lenders opening up a wider pool of financiers.
Contact us at Online Mortgage Guru and we will put you in touch with a suitable specialist to handle your enquiry.
