Buy-to-Let Mortgages Explained

A buy-to-let mortgage is different to a normal mortgage as you will then be able to rent out the property to tenants as a result. A residential mortgage is often taken over a period of 25-30 years, with the salary of the person involved taken into account before a mortgage is approved. Here we look at what you need to know about a buy-to-let mortgage.

Rental Forecasts b Although sometimes the personal income of a landlord will be taken into account, you should have in place a thorough forecast of expected rental income from the property you are looking to get a buy-to-let mortgage for.

Larger Deposits b For buy-to-let mortgages be prepared to have a larger deposit ready than you might need for a residential mortgage.

Interest Only or Repayments b You often have the option on how to pay back your mortgage. Interest only repayments give you lower payments each month and have tax benefits, but it means it will take longer to pay off the actual mortgage.

Void Periods b Whenever you are looking at renting out your property be prepared for rental void periods. There will be times where your property is empty, and you need a plan in place to cover the mortgage repayments.

Buy-to-let mortgages offer you a fantastic opportunity to rent out a property that you own. For more information, give us a call at Central Mortgages, and webll be happy to discuss your personal situation and how best to approach the buy-to-let market.