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Below, you'll find extensive
information on leading mortgage calc articles and
products to help you on your way to success.
Buy To Let Mortgage: Points To Ponder
By SeanH-9584
You may have decided that you want
to get into the business of property letting. If you do,
it�s unlikely that you will be able to buy the property
outright. So your first step is to look for a buy to let
mortgage.
A UK buy to let mortgage is not difficult to
obtain, especially nowadays. An increasing number of
lenders are getting into the business. But there are
some things you need to be aware of.
�First and foremost � NEVER be tempted to conceal from a
prospective lender that you plan to let out the property
as a business. Most �ordinary� residential mortgages
have clauses that preclude letting out for profit. So if
you do this you could find yourself in serious trouble.
�When you apply for a buy-to-let mortgage, you
are likely to find that the lender is not only looking
at your own income, or at the valuation of the property,
when deciding how much to lend. They will also want to
consider the potential rental income. If you want to
estimate this, the best way is to pose as a prospective
tenant and make enquiries about similar rental
properties in the neighbourhood.
�Many buy-to-let mortgage lenders require that
the likely monthly rental income should be at least 125%
of the monthly mortgage payment. Some require
that it should be at least 150%.
�Usually you will find that you need a larger deposit
for a buy-to-let mortgage than for an ordinary
standard
mortgage. It can often be 15% or even 25%. If you
have equity in your existing home, using this may be the
easiest way of getting hold of the deposit. You might be
able to negotiate a smaller deposit, but remember that
the bigger the deposit you pay, the better terms you
will get on your loan.
�Repayments on a buy to let mortgage don�t
qualify for tax relief. But they CAN be set against the
tax on your rental income. So can agents� fees, if you
employ an agent, and the upkeep and maintenance costs of
the property.
If you find all this confusing, your best plan would be
to find an independent mortgage broker who
specialises in buy to let mortgages. A broker would be
able to guide you through the process, explain all the
ins-and-outs, and find the lender most suitable for your
needs.
Article Source:
http://www.articlemap.com
Sean Horton is a Director of a
buy to let mortgage broker who offer specialist
advice for
buy to let mortgages
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