I want to invest in a buy to let mortgage how does it work
I have an existing mortgage of about £80,000.
As with every area of financial advice, we' d need to know more before offering specific feedback, but typically the following would be considerations:
- Although not based upon personal income, most (not all) lenders will require that an applicant has a minimum level of personal income, normally £25,000 to cover rental shortfalls, rental voids and maintenance of the property
- The property must be habitable
- You will need to pass the lender's credit search and normally have a sufficiently high credit score
- The rent must exceed the mortgage payment by a certain amount. A typical calculation applied would be that the rent received should be greater than 145% of the mortgage payment at a rate of 5.5%
- The mortgage can be arranged on a repayment or interest only basis
- A satisfactory survey will be required
- Some lenders will require that the mortgage ends prior to retirement, whilst others will offer terms that might take you beyond the age of 100
-The rates payable will be determined by your profile, the scheme required and fees payable.
- Many BTL mortgages are only available via brokers
Every case is different, but if you'd like more information and assistance from a whole of market, fee-free mortgage broker contact me at email@example.com or on 02380-199540
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