Compare Buy To Let Mortgages
Why You Must Compare Buy To Let Mortgages To Get the Best Deals
There are several advantages for landlords who compare buy to let mortgages and there's also a lot to compare. Landlords need to be sure that they are getting the best BTL mortgage deal, which will enable them to get the best return on their property investment. To do that landlords need to look at several factors when they compare buy to let mortgages.
One of the factors that landlords should consider when they compare mortgages is how many properties they are allowed to have with a particular lender. Some lenders impose a limit as low as three properties, while others will go to 15 or even more, as long as they fall within the lending limit. A lender that will only lend on three properties may not be suitable for the professional property investor, who may have as many as ten properties.
Similarly, when landlords come to compare buy to let mortgages, they will need to look at the minimum value of the property they plan to mortgage. This may be around £40,000, but could be lower, depending on the lender. Similarly, when they compare mortgages, there is quite a variety in the upper limit, which may be anywhere from £500,000 to several million, and the per property limit, which could be anywhere from a few hundred thousand to a million or more, depending on the lender and the average property value in the area. Landlords will need to compare buy to let mortgages to know if the lender's criteria matches their property purchase plans.
BTL Mortgage Questions
Those questions aside, another factor for landlords is whether they need to be employed to hold a BTL mortgage. If they are first time landlords, lenders may require proof of regular income in the form of payslips. However, landlords will also find plenty of lenders who will lend to self-employed landlords, which is good news for those managing several properties as a full time career.
Landlords also need to compare buy to let mortgages in terms of repayment methods to find the one that best suits their finances. Some landlords who compare mortgages may find that interest only mortgages allow them to use as little of their capital as possible on repayments, leaving that money free for further property investment. On the other hand, some landlords who compare buy to let mortgages may prefer to reduce their debt as quickly as possible and may prefer to take the capital repayment option. With many lenders, it is also possible to take the middle ground and use a part interest only part capital repayment option for their BTL mortgage.
Finally, landlords need to compare buy to let mortgages to determine the type of interest rate that best meets their needs. For example, some landlords may want to be in a position to take advantage of falling interest rates and may prefer a tracker mortgage. In contrast, other landlords may prefer to have certainty about their repayments over a long period and may opt for a fixed rate instead. All of these factors make a major difference to landlords' monthly outgoings and return on investment, so these are good reasons to compare buy to let mortgages.
