Buy to Let mortgage is the mortgage that is available when a buyer wants to buy a property for the purpose of letting it out.
The interest rates for lower deposits are usually higher and vice-versa for Buy to Let mortgage customers. Lenders will look at the borrowers income together with the income of the property once rented.
There are different variants of buy to let mortgages. The most common of these are:
- Capped rate
- Fixed rate
- Non-resident and
- Self-certified.
Each type offers its own unique benefits and to help with these we can provide you with independent mortgage advisers, allowing you the flexibility to select the best Buy to Let mortgage plan according to your financial needs.
Fixed rate Buy to Let allows you to pre-plan your repayments and finances as it embodies fixed monthly repayments.
On the other hand, variable rate Buy to Let mortgages can be beneficial for you if the interest rate drops during the mortgage period.
In self-certified types, you can escape the verification of your salary by making the claim that you can pay the loan interest. However, the lenders will look at the property as the source of serviceability as derived from the rental income and therefore do a rental calculation to satisfy themselves.
Non-resident Buy to Let mortgages are intended for non-UK residents and UK expatriates who want to invest in the UK market. Another type of mortgage is a capped Buy to Let mortgage which is a mixture of fixed and variable types. In this mortgage type, interest rates are variable up to a certain point and fixed if the interest rate rises above that point.
