Best Buy To Let Morgages?

audioblackout

Hi everyone.

I'm thinking of buying the house next door and renting it out. Can anyone point me in the right places to look for good deals on Buy To Let Morgages? I honestly have no clue where to start and would really appreciate some good advice!



Mark

JoeK_3

Hi Mark, a buy to let mortgage is a type of commercial loan geared to landlords. Because of this, interest rates can be more expensive than standard domestic mortgages and hence the need for professional whole of market mortgage advice.

You will need to consider the following:
1) Flexibility - Overpayment, underpayment
2) Fixed rates - Certainty of payments
3) Rental Income - How much
4) Short term tenancy agreement

You should be aware that buy to let mortgages are based on the rental income of the property involved and this is assessed by the lenders valuer.

Normally lenders will lend up to 85% of the property value but the mortgage payments have to be covered by the rental income, which is based around 100% - 125% of the monthly rental income.

Being a landlord has changed recently and you should read up on the current legislation being imposed on landlords before moving on.

Hope this helps as a start.


JoeK

dunstonh

Normally lenders will lend up to 85% of the property value but the mortgage payments have to be covered by the rental income, which is based around 100% - 125% of the monthly rental income.

Which has actually become a lot harder to achieve as interest rates have gone up and rental yields have dropped.

audioblackout

JoeK wrote: »

Being a landlord has changed recently and you should read up on the current legislation being imposed on landlords before moving on.
JoeK

thank you so much for such great replies. can i ask you where i would start, to read over this new legislation?

also where would i find perhaps a comparison site for buy-to-let mortgages? or perhaps some of you know where the best deals are at the moment?

many thanks everyone, this is a superb help!

Leon_W

Many of the best deals are not generally available direct to the public and are only available through mortgage intermediaries (brokers) so it is worth sorting out the services of one to get the best deal and advice. Buy to let mortgages can be an absolute minefield of different criteria and I wouldn't trust the internet as far as I could throw it to give you reliable information.

Regards

JoeK_3

audioblackout, you really need to get yourself a good whole of market mortgage adviser. One that you like, trust and once you have found him/her, hold on to them tight for the rest of your life.

See http://www.arla.co.uk/news/111006.htm for the retreat of the UK landlords as a result of the new Uk buy to let legislation.

JoeK