Compare Buy To Let Mortgage Lenders
Given the current housing situation in the UK, there is a greater demand for rental properties than ever. If you are considering buying a property to rent out, there are a number of questions that you may wish to ask yourself:
- Are tenants likely to be attracted to the property’s location and features?
- Will you be able to afford the deposit and mortgage payments?
- How much will you have to pay for ‘hidden costs’ such as agency fees, insurance and maintenance of the property?
- Which lenders have buy to let mortgage deals that are suited to your needs?
There are a number of lenders who could offer you a competitive buy to let mortgage deal. The market has become increasingly competitive although in recent years due to the credit crunch many lenders have been partially or completely withdrawing from the buy to let mortgage market. Many lenders who are operating today have stricter borrowing requirements and loan to value criteria has meant that generally speaking you need a 20% deposit or more to get a mortgage.
Factors to consider when getting a mortgage include:
Tracker or fixed rate mortgage?
A tracker mortgage has variable interest rates that follows the Bank of England base interest rate, whereas a fixed rate mortgage comes with a fixed interest rate.
How much deposit will be required?
Generally speaking the more deposit you can put down the better terms you can get. Most mortgage providers are currently requiring you to pay at least 25%; there are some who will consider a higher LTV but fees are usually higher.
If you are unsure of your options and you would like advice call our buy to let mortgage team on 0117 332 6063.