Buy To Let Mortgage

A Buy to Let mortgage is designed for individuals who want to purchase a property for the purpose of renting it out, rather than living in it.

Most Buy to Let mortgages operate on an interest-only basis. This means that the monthly repayments only cover the interest charges, not the principal (the amount borrowed). The principal amount will be repaid in full at the end of the agreed term.

Buy-to-let and standard mortgages have many similarities, but there are a few key differences.

• Typically, your mortgage payments will be interest only, with the entire loan amount due at the end of your term.
• The amount you can borrow is determined more by the rent you charge tenants, and less by your earnings.
• To secure a Buy to Let mortgage, you typically need a larger deposit than what is required for a standard mortgage, usually 25% or higher.

Generate income and cover mortgage repayments
Depending on the rental amount you charge and the cost of your monthly repayments, you may find that the property pays for itself. Additionally, you can earn income from rental payments.

Long-term Investment and Gain
Property is typically considered a long-term investment, with the potential for the value of your property to appreciate over time. However, it is important to note that there is no guarantee, as the value of your property may also decline.

Offset the costs against tax
Usually, you can claim back a portion of the expenses incurred in managing your rental property by including them in your self-assessment tax return.

Stamp Duty surcharge
Landlords are required to pay a 3% stamp duty surcharge known as the Stamp Duty surcharge.

The costs of running an empty property
There may be times when your property is empty. During these times, you will still be responsible for paying council tax bills, mortgage repayments, and other maintenance costs, even without the rental income to cover them.

Damage to the property and maintenance
You are responsible for covering any damage or repairs to the property, as well as ensuring it meets all the latest regulations and safety standards.

Why Best 4U?

As an independent mortgage broker, we are only interested in getting the best deal for our clients! We work with a wide range of lenders and can view the whole of market, with your goals and dreams in mind we can help you to get the deal that is Best 4U!