Buy
to Let Mortgage
Property can be one of the most profitable long-term
investments available. Buying to let can supply you with a regular
income in
the form of rent and a large asset with the potential to increase
in value. However not many people can afford to go around buying
properties to let. That is until the Buy-to-let mortgage came
into
existence.
Using your rental income to pay a buy to let mortgage
With a buy to let mortgage you can use the income received from
rent to pay the mortgage repayments. Once you have paid the mortgage
in full you are left with full ownership of a property. You can
then continue to receive rental income or you could sell up and
receive a large cash lump sum.
This can be an ideal alternative to a pension as it can be used
as a retirement income, either by continuing to let out the property
or by releasing the properties equity in the form of an equity release
plan.
The difference between a regular mortgage and a buy to let mortgage
A buy to let mortgage is similar to a regular homeowners mortgage
but there are some differences.
Always remember lending money is based on risk assessment. A lender
will consider all the risks involved in lending you money.
The advantage of a buy to let mortgage is that the mortgage lender
will consider your rental income when calculating your ability to
repay the loan. So you may be able to borrow more money based on
the fact that your income will increase after you have secured the
mortgage. This means that your potential rental income will be a
factor in the lenders risk assessment.
Many lenders now offer specialist buy to let mortgages with fixed
interest rates.
Buying to let is not an easy road to success,
it can take a lot of planning and effort to make it work
for you. Taking professional mortgage advice will ensure
you get the best mortgage deal for your circumstances.
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