Buy to Let Mortgages

One of the most profitable long-term investments can be purchasing property. A Buy to let property has the potential of providing an income in the form of rent. It could also be considered an asset that can increase in value over time.

A buy to let mortgage, which could also be called an investment mortgage, is used for people who wish to purchase a property for the purpose of renting to a third party.

Deciding on the right mortgage is for most people the biggest financial decision they will make.

This service offers you access to a full range of mortgages and re-mortgage products (UK only).


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Getting the right mortgage for you is essential. Making sure your repayments are competitively low and that you don’t pay over the odds for your mortgage is most important.

First time buyers and homeowners using Choice Mortgages should consider how much the product costs to arrange, any early repayment costs, the initial rate and the APR before making your final decision.

Please note if you do not keep up payments on your mortgage your house could be repossessed. Not all mortgages are regulated by the Financial Services Authority.

The payments received from any tenant should be more than the monthly expenditure required to cover a mortgage. Any remaining funds should go towards off setting maintenance or management fees.

Things to consider:

Buy to let mortgages are ideal for any one investing in property. It is a great way to invest for the future since you can continue to let the property or release the properties equity if required.

With a buy to let mortgage, the monthly income (rent) is used to make the mortgage payments. After the mortgage has been paid off, the property is yours. The Owner can continue to rent the property for a monthly income or you may decide to sell the investment for a lump sum of money.
Once the mortgage is paid in full buying to let is an ideal long term investment. It is often used for retirement income. Not so long ago the buy to let market was hard for some investors without the necessary funds to break into. But the buy to let mortgage has opened the market to a wider range of investors.

When applying for a buy to let mortgage borrowers must inform the lender what the expected rental income will be. The monthly rental income on your property should be at least 1.25 times the monthly mortgage payment. Your mortgage lender may request a valuation on the property before approving a buy to let mortgage. Once a valuation has been completed the lender will know what the property will achieve in rental income. If you are at all unsure about the rental income of a property it may be wise to pay for an independent valuation, before applying for a mortgage. A lender will not approve a buy to let mortgage if the rental income is too low.

Interest rates for buy to let mortgages are known to be higher than those of normal residential mortgages. Interest rates and terms of repayment will vary with each mortgage lender. Before applying for a buy to let mortgage, do your research and search all lenders to find the one that is right for your.

If in doubt talk to an independent financial advisor, make sure everything is explained to you so you don’t have any doubts when making your decision.



Deciding on the right mortgage is for most people the biggest financial decision they will make.

This service offers you access to a full range of mortgages and re-mortgage products (UK only).

Getting the right mortgage for you is essential. Making sure your repayments are competitively low and that you don’t pay over the odds for your mortgage is most important.

First time buyers and homeowners using Choice Mortgages should consider how much the product costs to arrange, any early repayment costs, the initial rate and the APR before making your final decision.

Please note if you do not keep up payments on your mortgage your house could be repossessed. Not all mortgages are regulated by the Financial Services Authority.