Buy To Let Mortgages from Rivington Mortgages
Buying residential property to let to tennants has become an increasingly popular investment choice throughout the UK.
There are two main features that make property a particularly attractive investment compared to other alternatives. Firstly, there is the prospect that your property could increase in value, while secondly, any rental income received could be used to supplement your mortgage payments. In some cases, this can lead to a profitable monthly income depending on the monthly mortgage payments versus monthly income.
Do bear in mind that if the property is vacant then the mortgage repayments will still need to be maintained as with any house with a mortgage. Future Rental income may not be sufficient to cover your mortgage repayments.
Buy To Let Mortgages Explained
If you are looking to buy a property to rent out to tenants then you'll need a buy to let mortgage. These buy to let morgages, differ greatly from traditional mortgages used to buy your home so it's important you understand the differences.
Most buy to let mortgages are offered on an interest only basis, which means you month payments will onyl cover the interest on your mortgage. The money you have borrowed for the house itself, will not go down. This amount has to be paid off in full at the end of your term which is done either by selling the property or taking out another mortgage.
Compared to traditional residential mortgages, a buy to let mortgage requires a larger initial deposit and you'll face higher rates of interest. These higher interest and fees is due to the higher risk to the lender. Unlike a residential mortgage, there are a lot more risks to the lender such as getting the rent payment every month from the tentants.
However, since monthly payments will only cover the interest on your mortgage, you will most likely end up paying less each month compared to a residential mortgage.
Who Can Get A Buy To Let Mortgage?
You can get a buy to let mortgage if you fall under the following circumstances:
- You are looking to invest in property such as houses or flats
- You understand the risks and can afford to invest in property
- You already own a home with or without a mortgage
- You have a good credit rating
- You earn over £25,000 per year
- You are under 45 (most lenders have an age limit which the user must be under when the mortgage ends)
If you match all the criteria above then we can help you find the perfect buy to let mortgage for you. Contact us below for personalised mortgage advice.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority
We normally charge a fee on completion of your mortgage, this varies dependant on your circumstances but a typical fee is £499."