Choosing The Right Buy To Let Mortgage
Choosing The Right Buy To Let Mortgage | Top Tips For Landlords
There are several factors to consider when landlords are choosing the right buy to let mortgage, as this choice will depend on their own personal circumstances and finances. When choosing the right buy to let mortgage an initial consideration will be whether landlords meet the minimum age requirements to qualify for the BTL mortgage. This can vary considerably among lenders, but is usually between 21 and 25.
Another consideration when selecting the right buy to let mortgage is the size of the property portfolio that lenders will permit. Choosing the right mortgage will depend on whether landlords need a lender who will lend on a small number of properties, such as three, or a large number, such as 25 or more. Mortgage lenders usually fall somewhere between these lines. However, landlords who wish to have even larger portfolios may have limited choices when choosing the right mortgage.
When searching for the right buy to let mortgage, landlords should also consider the minimum property value that BTL mortgage lenders deem acceptable. In many cases, this is around £40,000, but it may be much higher, depending on the postcode areas. Many lenders have a minimum value outside London and a higher value within the capital, reflecting that region's higher property values. Landlords who are choosing the right mortgage for a property in London can expect a minimum property value of around £75,000.
BTL Mortgage Advance
Another factor that affects landlords who are choosing the right mortgage is the amount that each lender will advance per property. This can be anywhere from a few hundred thousand to a couple of million pounds. Linked into this is the maximum loan amount each lender will accept and this will also affect landlords who are choosing the right buy to let mortgage.
The right buy to let mortgage will also depend on the amount that landlords can afford to deposit. Depending on the BTL mortgage lender, this could range from 25 per cent to 50 per cent. This makes a big difference when choosing the right mortgage, as many landlords wish to keep most of their capital free to make another investment if the right opportunity arises.
When choosing the right buy to let mortgage it is also important to consider repayment options and interest rates. Most BTL mortgage lenders offer landlords the choice of interest only mortgages, capital repayment mortgages or mixed repayment mortgages. Similarly, there is a wide range of interest rate options on offer for those who are looking for the right buy to let mortgage. This includes fixed rate buy to let mortgages, variable rate buy to let mortgages and tracker buy to let mortgages. In addition, landlords who are choosing the right buy to let mortgage can also benefit from flexible buy to let mortgages from a range of providers.
With all these aspects to consider, landlords should take time to ask around and seek advice (perhaps from a professional broker) before choosing the right buy to let mortgage.
