Buy To Let Mortgage

A Buy to Let mortgage is a gateway to property investment.   It allows the borrower [landlord] to purchase one or more houses to rent out to tenants.

A popular investment
Over recent years, Buy to Let mortgages have grown in popularity in the UK.  

Reasons for this include;

• increasing demand for rental property 
• low interest rates
• competitive Buy to Let deals being offered by lenders
• unpredictable stock markets has led to investors looking for safer options for their long-term investments

The benefits of Buy to Let

• landlords can benefit from the increase in the value of the property
• mortgage payments and property maintenance can be covered by the rent, paid for by the tenant so there is no additional cost to the landlord

The risks
Increasing interest rates and the slowdown of UK property prices have created a more uncertain market for investors.

Certain legal responsibilities come with being a UK landlord so it’s important to be aware of these beforehand.

There is no guarantee that it will be possible to arrange continuous letting of the property, nor that the rental income will be sufficient to meet the costs of the mortgage.

These risks need to be considered alongside the potential returns that can be made from property investing.

Where to find Buy to Let mortgages
Many UK lenders now offer Buy to Let mortgages.  A professional financial advisor can provide advice about the best deals on the market and the right route for you.