Buy to Let
- A buy to let mortgage is designed for borrowers who want to let their property out to a third party (tenants).
- More and more people are investing in property as a long-term opportunity to make profitable returns, and as a way of securing finance for their retirement.
- There are now plenty of competitive mortgage deals around that are specifically aimed at the buy-to-let market, ranging from special offer mortgage deals to fixed and variable rate options.
- In addition, mortgage lenders will often assess buy to let mortgages on the earning potential of the property (the rental income) as well as normal income.
- What started out as a trickle of investors is now turning into a flood. The backlash against poor-paying pensions was part of the impetus and encouraged people to start switching money into bricks and mortar instead.
- The authoritative Council for Mortgage Lenders says the number of buy-to-let mortgages rose by a staggering 48 per cent last year taking the total number to about 850,000. While figures for the first half of this year aren't available yet I feel sure they will show continued growth.
- And why not? High interest rates are actually good news for landlords. It means more potential first-time buyers are priced out of the market and forced to continue renting