Buy to Let Mortgages

Buy-to-let is often seen by private investors and also businesses as an alternative way to make their money grow and work for them better. It can offer the chance of two main benefits for the owner. There is the income that can be gained from letting the property out and of course from the potential increase in the value of the property.

Unlike the mortgage that you raise when you first purchase your home, which is based upon your earned income and the lenders income multiples, a buy-to-let mortgage is normally based on the income which can be generated from the letting out of the property and this can be up to 120%- 130% of the rental income that is achieved, so the mortgage can be self funding. Making the most of your buy to let property is essential from the start and this in the main begins with the right property in the right location. If your main aim is for growth in the value of the property then obviously you need to look at an area that has seen month on month increase in property values as the past is normally a sign of the future. Also look for an area where people may want to long term rent your property, this may be where a large company is situated, or a hospital or college or university. If income is your main aim, then University towns and cities are good hunting-grounds and you're assured of a regular, although changing, stream of tenants, over the years.

Lenders like to see where their repayments are coming from and should be happy if you could produce some projected figures showing a gross income of around 120%-135% of the property's mortgage costs. This should cover the costs if things don't go quite as smoothly as planned.

For all the advice and information that you need, the best approach is to use an on-line mortgage broker. As they have access to all the latest mortgages from a range of lenders, and will help you find the best possible, and the most favourable terms.