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Buy To Let Mortgages - Best4U Kettering Northamptonshire
Buying a second property to let using Buy to let Mortgages has become more and more popular in recent years.
But before you rush out to buy a second property, make sure you do your research first. You need to make sure that you select a property in the right location. Not only that, you have to make sure that you choose a property that will suit your target market. So there is no point in purchasing a penthouse suite if you want to let it out to students!
Once you have decided on the property to purchase, you will find that many lenders offer specific mortgages for properties that are being brought to let. There are many types available - including both repayment and interest only - but what makes the products distinctive is the criteria lenders use to calculate the amount you can borrow. Rental yields are usually around 125% of the mortgage payment but some lenders have different ratios and some will allow 100% rental yield but charge a higher arrangement fee instead. Generally these days you now need a 25% deposit/equity in the property. Also fees can be very high, so be prepared to pay these or have them added to your loan.
If you're thinking of buying a property as an investment, please run it past us first and we can hopefully make that decision easier for you.