Best Mortgage Company For Investment Property
How To Choose The Best Mortgage Company For Investment Property
Selecting the best mortgage company for investment property can be difficult. There are a lot of factors that need to be weighed up and what's best for one landlord may not suit another. Here are some factors to consider when choosing the best mortgage company for investment property.
First of all, it is best to decide how you want to invest. You might decide that you want to set up a special purpose vehicle limited company to enjoy any tax advantages that might bring. In this case the best mortgage company for investment homes will be one that offers BTL mortgages to those companies. This may reduce your choice of mortgage companies, though.
Another consideration when you choose is the type of property you plan to invest in. Some BTL mortgage lenders do not lend for certain types of property. Perhaps the new legislation on houses of multiple occupancy has caused them to reconsider their exposure to student flats. Perhaps they would prefer not to bother with ex local authority housing. If this is the type of investment property you plan to have, then a mortgage company with these rules may not be the best mortgage company - at least, not for you.
BTL Mortgage Criteria
Then it's worth thinking about the best company for your own circumstances. If you are very young or near retirement age, then this may limit your options for an investment mortgage. Many companies have a lower age limit of 21 and an upper age limit of 65 or 70. If you don't fall between these extremes, then none of those companies will be suitable.
Deposits are another important factor when deciding on the best mortgage company for investment property. Some BTL mortgage companies will grant mortgages at up to 75% loan to value, leaving you only 25 per cent of the property price to find. Admittedly, these are few and far between, and you should expect to have to find around 25-35 per cent of the property price. In general, the lower the loan to value, the better the rate, so if you have a lot of spare cash a deal like this might be the best mortgage company for investment property.
Interest rates are another key deciding factor when it comes to the best mortgage company for investment property and there is a lot of choice in this area. If you want to know exactly what you will pay over a long period then the best mortgage company will offer a wide range of fixed rates. If you prefer the flexibility of having payments reduce from time to time, then the best mortgage company for investment property will offer several tracker BTL mortgage deals. All of these factors need to be considered when selecting the best mortgage company for investment property.
