Buy To Let Mortgages

Buy to let mortgages offer all the same types as with a normal residential mortgage, however generally speaking the interest rate is higher, but there are some very good deals to be found.

In the past a lot of people have obtained 100% mortgages, that is a mortgage which is the value of the whole property, and there rental income just pays the interest of the mortgage hoping that the value of the property will go up which will be their capital gain, however there is an element of risk. In the long term data has shown that property prices do rise, so if you are planning to have the property 10 or more years then you will probably ride out when properties do fall, but please remember there is a risk as with most investments.

Currently most buy to let mortgage companies will lend about 80% of the property, therefore you will be required to find a 20% deposit. The mortgage company will also consider the type of property you are buying, whether it is worth the price you are buying it for and the rental income for the location of the property.