Buy-To-Let Mortgages Case Study
Buy to-let mortgages
What are buy-to-let mortgages?
Buy-to-let mortgages, as the name suggests, are simply mortgages meant for people or landlords who buy a particular property or properties just to rent out. Buy-to-let mortgages are normally more expensive than normal mortgages. They however can help one a great deal in doing property investment and becoming a property investor. However, since investing in property can be risky, so a buy-to –let mortgage is not advisable for risk-averse people. These mortgages are most suitable for people looking at investing in flats and houses. Even if an investor can afford to do an investment in property downright, there are tax advantages available to a landlord using a mortgage, as their interest can be offset against the tax on the rental profits.
How to get a buy-to-let mortgage:
Having your …show more content…
• The fee on these mortgages is usually also higher.
• The minimum deposit required to get a buy-to-let mortgage is usually twenty five percent of the property’s value. This can also vary from twenty percent to forty percent, depending upon the lender.
Most of these mortgages are interest-only buy-to-let mortgages, where only an interest is required to be paid and nothing from the lump sum borrowed is required to be paid each month. At the end of the term of the mortgage however, the full capital sum is obviously required to be paid back. The amount that can be borrowed depends upon the lender.
Most of the market for buy-to-let mortgages is unorganized and these mortgages are not regulated by the Financial Conduct authority. It is advisable to speak to an independent broker while looking for a buy-to-let mortgage. These brokers can provide you the best information on deals available and can also help you choose the one most appropriate for you. One should also, however, do one’s own research
What are buy-to-let mortgages?
Buy-to-let mortgages, as the name suggests, are simply mortgages meant for people or landlords who buy a particular property or properties just to rent out. Buy-to-let mortgages are normally more expensive than normal mortgages. They however can help one a great deal in doing property investment and becoming a property investor. However, since investing in property can be risky, so a buy-to –let mortgage is not advisable for risk-averse people. These mortgages are most suitable for people looking at investing in flats and houses. Even if an investor can afford to do an investment in property downright, there are tax advantages available to a landlord using a mortgage, as their interest can be offset against the tax on the rental profits.
How to get a buy-to-let mortgage:
Having your …show more content…
• The fee on these mortgages is usually also higher.
• The minimum deposit required to get a buy-to-let mortgage is usually twenty five percent of the property’s value. This can also vary from twenty percent to forty percent, depending upon the lender.
Most of these mortgages are interest-only buy-to-let mortgages, where only an interest is required to be paid and nothing from the lump sum borrowed is required to be paid each month. At the end of the term of the mortgage however, the full capital sum is obviously required to be paid back. The amount that can be borrowed depends upon the lender.
Most of the market for buy-to-let mortgages is unorganized and these mortgages are not regulated by the Financial Conduct authority. It is advisable to speak to an independent broker while looking for a buy-to-let mortgage. These brokers can provide you the best information on deals available and can also help you choose the one most appropriate for you. One should also, however, do one’s own research