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Over recent years investing in property has become increasingly popular,
helped by rising house prices and the relatively poor performance of the
more traditional stock-market investments. You can benefit from the returns
this form of investment can provide even if your investment amount isn’t
enough to cover the full purchase price by taking advantage of a buy to
let mortgage. Buy to let mortgages are designed to fund the purchase of
a house with the sole purpose of letting it out to tenants in order to see
an income from it.
Buy to Let Mortgages:
The main difference between buy to let mortgages and regular residential
mortgages is that when assessing your income the lender will take into account
not only your regular earnings, but also the potential rental amount that
the property could generate when determining if you are able to meet the
repayments. Before applying for a buy to let mortgage be sure that you are
aware of the costs and are able to meet these, the deposit for example will
typically be in the range of 10 – 20% and there may be arrangement
fees charged.
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