Investing money in the buy to let market may seem like a great way to create some additional income, but like all investments, it comes with a certain element of risk and if things don’t go just as you planned you may find that you end up losing money.
As a landlord you will still be responsible for making mortgage repayments during void periods and while you have a paying tenant in the property you will also be responsible for all necessary repairs and upkeep for example boiler servicing, gas servicing, repairs to heating and plumbing etc, because of these additional unforeseeable expenses it is highly advisable that you have a contingency fund set aside before you invest in buy to let property.
In spite of all of the risks involved buy to let
Can you get a Buy to Let Mortgage ?
Do you already have a residential Mortgage? – Most lenders will not allow a First Time Buyer *** to purchase a buy to let property but there are a few exceptions. If you are a first time buyer planning to invest in buy to let property contact us today *** and we will try to help in any way we can.
Can you afford to take the risk ? – Buy to let property investment does not come with a guaranteed profit house prices can go both up and down and it is unlikely that you will continuously have a paying tenant so it’s important that you do not put money at risk if you cannot afford to lose it.
Do you have a clean credit record ? – Failing to keep on top of your current credit commitments will undoubtedly have a negative impact impact on your ability to get approval on a buy to let mortgage application.
Are you earning £25,000 + / Year ? – This is a standard requirement from most lenders. You can prove your income with payslips and tax returns.
How do Buy to Let Mortgage work in Northern Ireland ?
By in large Buy to Let mortgage work in pretty much the same way as residential mortgages however some of the key differences include.
Higher Interest Rates – Interest rates tend to be higher on buy to let mortgages as they represent a greater risk to the lender, you may be able to secure a more competitive rate by providing a bigger deposit.
Deposit – Most lenders require a minimum deposit of 25% whereas residential mortgages can currently be secured with a 5% deposit.
Repayment Type – Many buy to let investors choose to take out interest only mortgage on investment properties this means that they have to pay less out each month during void periods but they can still overpay when times are good to reduce the loan amount.
How much can you borrow on a Buy to Let Mortgage ?
The amount you can borrow on a buy to let mortgage will usually be directly related to the anticipated rental income, figures will usually have to be verified by an approved estate agent or valuer.
The majority of lenders will want the anticipated rental income to be around 25% higher than your mortgage repayments.
Where can you get a Buy to Let mortgage ?
Most high street lenders offer mortgages on Buy to Let properties and there are a few who specialise in Buy to Let Mortgages.
Our Mortgage Advisers search through a comprehensive list of lenders in order to find the most suitable deal for you.
If you need a buy to let mortgage simply fill out the inquiry form and we will do whatever we can to help. Not only that but our mortgage brokers will never charge you a fee for our services.