| How do I choose the best buy to let mortgage?Buying the right investment property is the first step. But financing your investment property is a very important second step. Get the buy to let mortgage wrong and the cost of this mistake could be significant.How do I find the best buy to let mortgage?I will provide a review of your current mortgages (either residential or buy to let) and tell you what alternative products are available to suit your requirements If you are a first time investor in buy to let and want initial advice as to what mortgage you can obtain, I can tell you what products and rates are available and what is most appropriate for your circumstances.
A residential mortgage depends on your salary and affordability. However, a buy to let mortgage is based on the rental income of the property. A lender will use the rental value to determine how much to lend on a buy to let mortgage. The lender sets a ratio of rent received against mortgage interest cost paid. The ratio varies from lender to lender and may be anything from 100% to 135%. For example, if the rent is £1,000 per month, the mortgage interest this rent will cover will range from £740 to £1,000. If the mortgage interest rate is 6.5%, this means a rental of £1,000 will support a buy to let mortgage from £136,750 to £184,600 There are a number of websites which will compare buy to let mortgages. However, these will compare the mortgage rates. They will not necessarily tell you which buy to let mortgage provider will advance the biggest sum for any given rental. It is recommended you seek the advice of an Independent Mortgage Adviser in order to:
An independent mortgage adviser will have access to the whole of market . They will advise which is the best buy to let mortgage for you based on your stated criteria. I provide mortgage advice under the trading name of Positive Mortgages. Please click here for mortgage advice |
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