Mortgages Yorkshire : Buy to Let

Are you considering buying a house to let, either to tenants or as a holiday home in places such as the beautiful Yorkshire dales, The Lincolnshire Wolds or other holiday regions across the UK? If so, read below for our guide to Buy to Let Mortgages.  

What are Buy to Let Mortgages?

Buy to Let investing has been on the increase since the mid-nineties and studies indicate that it shows no sign of slowing down. Buy to Let investing involves the purchase of any property which is bought with the intention of making a profit through letting. As a result of the Buy to Let boom there is more choice in Buy to Let mortgages than ever before. The conditions for Buy to Let mortgages differ from standard mortgages. Therefore, the following should be taken into account when considering a Buy to Let mortgage:

• Deposit – Lenders may request a higher deposit than the average standard mortgage deposit – this may be as high as 25% of the property value but 15% is more likely at present.
• Rent charges - The lender will want the property to "self fund" from the rental income with a margin for safety. If there is a shortfall on rental income to mortgage payments then your personal income can be used by some lenders to make up the shortfall.
• Increased Interest Rates – Buy to Let Mortgages usually have higher than normal interest rates.

What is your main reason for buying a property to let?
Are you aiming to make a profit from the investment in the property itself and re-sell it when house prices are high or are you aiming for a month by month profit from the rent you charge? You will need to discuss this with the mortgage broker as this may determine the type of Buy to Let mortgage you have.
Regardless of which of the above reasons you might have for buying a property you will also need to consider all the extra costs you may incur, some to consider are:

• Letting Agent’s costs
• Insurance (building insurance, contents insurance, legal insurance)
• General on-going maintenance of the property
• Furniture/ electrical appliances/decorating costs
• Tax issues - consult an accountant
• Health and Safety issues - consult local council

At Mortgages4U.info we offer a large range of all types of mortgages, including Buy to Let. We have experienced mortgage specialists at our offices in Yorkshire and Lincolnshire, who will discuss the best mortgage options for you. For honest and reliable mortgage advice, give us a call now on 0844 567 5107 or click here to contact us

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