When you are in the market for a buy to let mortgage, it is only natural to want the best rates and terms. Doing that on your own requires many hours of examining best buy tables and sending numerous requests for information to all kinds of firms. When information is returned to you, analyzing all the different options is like trying to solve a puzzle and you still cannot be sure that you have identified all the hidden issues, fees and disclaimers.
To get the truly best buy to let mortgages available, an investor needs to be working with a licensed professional broker. The differences between an interest only and a repayment mortgage are significant when choosing rates and terms. While property may still be a safer investment than the stock market, a complete analysis of the client's finances, the condition and location of the investment property and the amount of anticipated rental income all factor into the overall success or failure of a venture. These are all things the average investor would not be able to do alone.
Once the broker has all the information pertinent to the client and his plans for the buy to let mortgage, he can sort through all of the possibilities and select several lenders to present to the client. After discussing the pros and cons of each option, the buyer can make a truly informed decision and submit an application. The broker takes care of all the paperwork and stays in contact with the lender until the mortgage is approved. The expertise and dedication of the broker allows for most decisions to be made fairly quickly.
Buy to let mortgages involve a larger down payment and higher interest charges than private residential mortgages. That is one of the best reasons for working with an experienced broker - knowing that you have made the best choice possible to protect your investment.
Buying property to let has created a boom business in Britain. Low interest rates made mortgages more affordable and rental income has seemed attractive compared with what you could earn on other investments. But now with interest rates rising, the cost of property high and rents failing to keep pace, buy-to-let is a much harder prospect than it once was.
The UK buy to let mortgage market suffers highs and lows. Perhaps it has become a victim of its own success. However, experts are currently fairly confident about the buy to let market as the noted lack of first time buyers has led to a higher demand of rental accommodation. Buy to let, like other investments, involves an element of risk which must never be ignored or understated.
However, if you go into your buy to let venture with your eyes wide open, then there is no reason why it cannot work for you. The main difference with a buy-to-let mortgage is that the lender can take account of the rent you will earn, as well as your income from your main employment. Some lenders are willing for you to add the rent to your salary while others will only base the loan entirely on rent. Any existing mortgage you have on your own home property will reduce the amount you can borrow under the buy-to-let scheme.