Buy to Let Mortgages at the MoneyCentre.
Buy To Let Mortgages over the last 10 years have enabled thousands of ordinary people to become investor landlords. Buying a property using a buy to let mortgage has for some people replaced the pension scheme when planning for income after they retire.
There are many products available, but at The MoneyCentre you can use a free automated quote system to compare the buy to let mortgage offers of many different mortgage companies, all of which offer competitive products and a high standard of service. Using this free service to find the best buy to let mortgage, you will also be told what the maximum loan is, receive a breakdown of costs and monthly payments and get a free analysis of earnings that can be achieved from just a single property or a portfolio of properties.
Click here to compare Buy to Let Mortgages.
At The MoneyCentre you will also find a free buy to let guide, a buy to let mortgage calculator, an information area for those new to buy to let and also an area for existing landlords discussing issues such as below market value financing, tax, insurance, portfolio liquidity as well as the latest buy to let legislation.
Click here to visit the MoneyCentre web site.
Buy to Let Mortgage News
Cheshire Mortgage Company have announced that they are still strongly in the market for new business including providing a buy to let mortgages. The buy to let mortgages on offer combine a 2% discounted rate, interest only or an early repayment scheme. (11/09/2008).
Darren Winters of WINpropertyInvesting believes, because of lower house prices, stable rental income and the recent announcement by the government where they have removed stamp duty on homes costing less than £175,000, that now is an ideal time to buy with buy to let in mind. (08/09/08). This may indeed be the case but although buy to let mortgage rates are slowly coming down it can still be difficult to get a good deal, with 100% buy to let mortgages still being some way off.
WalesOnline have published an article suggesting that the number of current buy to let mortgages is now at over 1 million, an all time record. This represents 11% of the combined value of all UK mortgages and 9% by number. Having said that the market slowed in the first half of the year with the number of buy-to-let mortgage deals decreasing by about 18% when compared with the previous six months. (11/09/08).
The Royal Institute of Chartered Surveyors have announced that because of the squeeze on finance, the property sales figures for August were at their lowest for approximately thirty years. They believe that the governments attempt to stimulate the property market by removing stamp duty on some property sales will benefit the buy to let investor rather than the general market as they will be more likely to have the deposit needed for mortgages in the current environment. (10/09/08).
The latest figures from the Council of Mortgage Lenders show that in the first half of the year the number of repossessions associated with buy to let mortgage lending has doubled from the same period in 2007. The figures also show that there has been a rise in the number of buy-to-let mortgages that are in arrears, which would suggest the trend is set to continue. There is no need to panic though as numbers are low with less than 1% of loans currently in arrears. (01/09/08).
Buy to let mortgages explained
Property can be a hazardous and confusing business thanks to concerns over lending rates and unpredictable prices. The ups and downs of British home values have been well documented over the last few years but for those who get it right, investing in property can be a rewarding and profitable experience. Some look to buy a home before improving it and selling it on at a higher price, while others concentrate on buying houses and then renting them out. For these types of investors buy to let mortgages are an option.xml:namespace prefix = o />
Also sometimes tagged as an investment mortgage, a buy to let home loan is designed to allow a person to buy a property and then rent it out for a fee which covers the mortgage payments and any associated costs and, in theory, provides a healthy profit on top. This type of loan proves generally popular with those who can afford it whatever the financial weather. Even when the housing market as a whole slumps this can see more demand from first time buyers for rented property. A healthy student population also means lets are always in demand to some extent.
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It comes as no surprise then that most lenders look very closely at buy to let mortgage applicants and their likely ability to pay back a loan. A bank or building society will look for assurances that the borrower is planning to buy a property which will go up in value, rather than down, over time. Lenders often also put caveats on how the landlord rents the house. As part of the conditions of the home loan they may insist that the house is marketed and rented through an estate agent rather than privately. They can even request that the landlord does not rent the property to tenants who are relying on state benefits. Most lenders will also ask that the borrower puts down a sizeable deposit when taking out a buy to let mortgage, typically around 20 to 25 per cent.
When making a final decision on whether or not to go for a buy to let mortgage it's important to compare interest rates and think about the added costs of the venture. A landlord can expect to pay out maintenance costs, estate agents costs, legal insurance, buildings and contents insurance and any outlay on decorating.
Although potentially lucrative, buy to let mortgages are as big a decision as any other home loan. It could pay to seek independent financial advice before making a final decision and it is important that a borrower understands the business elements of running a buy to let mortgage, particularly if they intend to run a number of them at once and have a home loan of their own too.