Most homeowners engage in buy-to-let mortgage deals because it enables them to easily borrow money to purchase a property and then putting them out on a highly profitable rent. This practice has really inspired the desire to become a landlord especially in the United Kingdom.
There are however different types of buy-to-let mortgage deals in the market today that can satisfy the needs of every borrower based on their financial capacity.
For the purpose of this piece, we shall focus on the various buy-to-let mortgage types available for every borrower.
1. What Types of Buy-to-let Mortgage Deals Are Available?
Finding the right mortgage deal is not an easy task. In fact, there are plenty of them but that’s not the main reason. The trick is to find the right one among the available offers. You need to carefully consider what criteria are the most important for you to get your return on investment. Here are some main deal types that can vary between offers and impact the deal:
- Maximum Loan Value
- Repayment Terms
2. What are Some of the Conditions for a Buy-to-Let Mortgage?
Like I mentioned earlier, buy to let mortgages allow landlords to borrow money to purchase a property with the aim of renting it out. This attempt to borrow however, has a condition of Rent to Interest attached. Therefore, the borrower is mandated to prove that they can get sufficient rental income from the tenant so that the interest on the mortgage can be paid.
Similar to other mortgages, the borrower places a deposit for the property. Some types of buy-to-let mortgage deals in this case allows deposit from 75% to 85% Loan to Value.
3. What are The Specific Buy-to-Let Mortgage types?
Are you looking to get a prime Buy to let offer? Well, we have them in categories. With so many types of mortgages available, I will try to explain the four most interesting buy-to-let mortgage types:
This types of buy-to-let mortgage deal is very profitable for every interested borrower. It involves interchanging mortgages between lenders mostly when a mortgage deal has been concluded. This method paves way to get a cheaper mortgage due to the possibility of swapping to a mortgage with a lower interest rate. Subsequently this helps in reducing your monthly repayments.
b) Buy to Let
This type of buy-to-let mortgage deal is obtained for the sole purpose of renting a property out and this can either be on a repayment or an interest-only basis. Please note that there are some legal requirements attached with having a rental property like providing a rental agreement and ensuring that the property measures up with the essential safety standards. In this case, we try to build close engagement with our clients right from the time of loan application to the end of the transaction. This will help give them the right information about the minimum rent calculator required for a buy-to-let mortgage deal.
c) Home Movers
We provide this type of buy-to-let mortgage deal as well. It is similar to that of Remortgaging where lenders interchange properties between themselves. This type of transaction is beneficial as you can easily obtain a better deal such as paying a lower exit fee when you move from your existing mortgage provider.
d) First Time Buyer
It is a known fact that getting a mortgage for the first time is somewhat difficult, especially considering the cost of obtaining it. We will be more than happy to show you how to use our Best Buy to Let Calculator. This should give you and idea on how your monthly mortgage payments would turn out.
No matter the circumstance, when searching for your choice mortgage; whether you want to obtain a new mortgage or you desire to remortgage your existing buy-to-let property, we will help you save time and resources.
Your home may be repossessed if you do not keep up repayments on your mortgage.