Buy To Let Guide - from Mortgage Introduction Services

What is a buy to let mortgage?

The Buy To Let mortgage is the initiative devised by the Association of Residential Letting Agents (ARLA) and supported by the leading letting mortgage lenders.

It is designed to stimulate the growth of the Private Rented Sector by encouraging private investors to take the opportunities given by low, highly competitive, interest rates and the reasonable certainty of sustained capital growth over the coming years.

The difference with Buy-to-Let mortgages ?

Broadly, there is little difference between arranging a Buy-to-Let mortgage for investor landlords and a standard mortgage for owner-occupation. Buy-to-Let mortgages are subject to the usual status checks. Loans can be arranged for terms of between five and 45 years and for up to 85% of the value of the property. Through the Buy-to-Let initiative, rents achievable from an investment property can be taken into account when calculating affordability.

Why invest in property?

Some two million households rent through the private sector in the United Kingdom. Rents paid can range from £50 a week for a Highland croft, to rents that run into thousands of pounds a week for apartments in the prime areas of London.

With the changing working patterns of employees and the rise in short term contract work there is a constant demand for properties to rent around the country.

Additional Costs

When you manage a property there are many costs involved in addition to the monthly mortgage repayments. As a guide, you should be aiming to achieve a gross rent of about 130% of the rental property's mortgage repayments (interest only) in order to cover your costs.

Purchasing property to let is being considered by an increasing number of people. The U.K. workforce has become very flexible and the need for businesses, individuals and families to move with ease is paramount. Social attitudes have also changed with many young people renting rather than buying.

What can we can offer you ?

We introduce you to mortgage brokers who offer you a simple fast and effective means of securing the right mortgage for your needs. They have access to the whole buy to let mortgage market.

We pride ourselves in the service we offer because we know how stressful arranging a mortgage and moving home can be. Our service is aimed at introducing you to independent, professional advice services.

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