Buy to Let Mortgages

Buy to let mortgages are becoming increasingly popular and are offered by many different banks and building societies. Many landlords use a mortgage specialist or broker to find the most competitive buy to let mortgages available.

The main reason that buying to let has become so popular clearly due to the fact that becoming a landlord can be very lucrative - however it is not a licence to make money, and is therefore essential that buy to let research is done.

It is important to realise that renting a property is not as easy as it sounds. It is often a risky and complicated method to make money and is very time consuming. There is no guarantee that house prices are going to increase. However, having another property with tenants effectively paying off the mortgage can reap considerable financial rewards in the future with the right conditions.

You need to ask yourself the following questions:

• What type of property should I buy to let?
• Should I use a lettings agent to find tenants and manage the property on my behalf?
• What mortgage rates are available for buy to let mortgages?

There are 3 main differences in buy to let mortgages:

Rent Potential

This is the main factor that will influence the decision of the banks or building societies. In some cases, your own income is not even considered!

Interest Rate

Buy to let mortgages normally have slightly higher interest rates than normal mortgages - due to their slightly higher risk.

Larger Deposits

For a buy to let mortgage, a minimum deposit of 20%-25% is typically required.

If you want any more information about mortgages, please feel free to contact us - we will be more than happy to help. Alternatively, why not use our Leeds Mortgage Review system to find your perfect mortgage?