Buy to let Mortgages.

Despite what you may have read, becoming a private landlord does not mean that this is an easy way of making money. Far from it.

It can be quite risky and far more complicated than you may imagine. Firstly, it can be very time consuming, and like other forms of investment, there is no guarantee that property prices will rise. However, all things considered, having an investment property to let to tenants, could give you some considerable rewards financially over a period of time.

The main difference with a Buy to Let mortgage is that the borrowing ability is based on the rental income that you can earn as well as your own income. Sometimes, your own income is not even taken into consideration. Buy to Lets usually have slightly higher interest rates applied to them as opposed to your own residential mortgage and they will also mean that in most cases you will need a higher deposit typically 25% of the purchase price but sometimes 20%.

A big factor in deciding on a second property is whether you are looking at income on a month to month basis (rent), capital growth, or both. This may well affect your decision with the type of property that you are looking to buy. A consideration is that when managing a property you will need to take into consideration the potential maintenance costs that could be incurred. As a rule of thumb, it’s probably best to be able to obtain a gross rental income of around 135% of the interest-only mortgage payments so that if anything should go wrong, you will more than cover your costs. If you are going to use a letting agent to collect rents and manage the property, the typical charge for this is 10% of the rental income.

Call us today on 020 3002 0933 to find out more.

Buy to let Mortgages for people with Bad Credit

This depends on various factors, what kind of deposit do you have? when was the bad credit was registered? have you since cleared the bad credit? What type of debt was bad credit? (credit cards, loans or mortgage). This is a complex area. Firstly you should get a copy of your credit report from a credit agency such as Experian, Equifax, or Check My File and then discuss your options with a Finance4homes mortgage broker in this area.

Buy to let Mortgages for people with Bad Credit call us today on 020 3002 0933 to find out more.