Getting A Buy To Let Mortgage With 10% Deposit
Lenders will generally offer buy to let mortgages to borrowers based on how much risk is represented by the customer depending on their financial situation. From the provider’s point of view, a borrower that can afford a larger deposit is a far less risky option than someone who can only afford a small down payment. In order to compensate for this risk, lenders will often charge higher rates for these customers.
Deposits can obviously have a substantial effect upon overall cost of a mortgage, and it is therefore important to weigh up the pros and cons of a proposed agreement. If you are searching for a suitable buy to let mortgage, it is recommended to shop around.
Lender criteria has become much tighter post 2008 and the credit crunch with banks and building societies taking a more risk averse approach to lending. Typical maximum loan to values for buy to let are set at 75% by most lenders some may stretch to 80% i.e. a 20% deposit.