How to Get a Buy to Let Mortgage

The rental market in the UK is constantly on the increase. More people are choosing to rent property rather than buy it. This is because they cannot find a suitable mortgage or just don’t want to risk the investment in the current financial climate. So there is an increase in properties being bought by landlords with the sole purpose to rent them out.

How to Get a Buy to Let Mortgage

With properties that are going to be earning money for the owner, you will need a special type of mortgage. It is called a buy to let mortgage and there are many lenders in the UK who specialize in this type of mortgage.

The first thing you will need before applying is a property in mind. This stands to reason as you need to show the lender what you have in mind. But they also need to know because they will work out the potential rental income of the property depending on the area it is in. They will look at properties in the surrounding area to see what the rental income is and compare it.

Once you have the property in mind, you can then start to look for a lender. Each lender will have different charges and interest rates, so you will have to have a real good look around.

You will need to have a deposit that you can put down on the mortgage. This will be 10%-15% of the mortgage in most cases. You will also be charged a set up fee which can be more than £1000. Again, this varies with each lender as some have a fixed fee and others charge a percentage of the total mortgage.

These are just some of things you need to know when searching for how to get a buy to let mortgage.