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Buy to Let Mortgages - Landlord finance

buy to let mortgage signBuy to Let Mortgages have been created for people who want to invest capital into property for letting purposes. There are two main benefits to the residential landlord. Firstly, it can provide a stream of income. Secondly, a property purchased for Buy to Let has the potential to accumulate capital over time.

There are 3 considerations in Buy to Let Mortgages:

  • Larger Deposit - A mortgage lender will usually require a larger minimum deposit than a standard mortgage loan; typically 25% of the property value.
  • Rent Potential - The agreement of a mortgage on a Buy to Let property will generally centre on the rental income that can be generated. However some Lenders may not take into account this income.
  • Interest Rate - Buy to Let mortgages will normally have higher interest rates attached to them than you would find on a normal residential mortgage.

Local letting agents can help when researching properties as your potential Buy to Let. This will help define the types of property that are in demand and which areas are the most sought after. For the best buy-to-let mortgage for you, call Central Financial Services.

Please note most Buy-to-Let mortgages are not regulated by the FSA.

Buy to Let properties are not guaranteed ways of making money. You will have invest your time and there is no way to ensure that property prices will rise.

You should also be aware that becoming a landlord carries a number legal obligations and costs. Other possible considerations are:

  • Property Maintenance
  • Letting agent's fees
  • Ground rent / service (lease hold properties)
  • Legal insurance
  • Landlords Insurance
  • Maintenance of Gas & Electrical appliances
  • Decorating costs

If you are serious about owning a Buy to Let property we can help. However, we do suggest you read through the Association of Residential Letting Agents website.

Speak to an adviser now on 0121 314 7707 or complete an Enquiry Form or Email us.