Buy to Let Mortgage Centre
Most people looking to buy a property to rent out to tenants will need to get a buy to let mortgage to make this a possibility. This is not the same as a regular homebuyer’s mortgage, as the buy to let version is typically designed to run on an interest only basis. You’d still need to pay off the amount borrowed when the term reaches its end. Some investors sell the property at a profit to clear the debt.
The success of the buy to let market
The market really took off from around 1995 onwards. Property prices increased by enough of a margin to put them out of reach of some would-be buyers. This meant many more people decided to rent instead – increasing the demand for that sector.
In turn, many investors decided to add to their portfolios of investments by investing in one or more rental properties. Few people can afford to buy outright to enter the buy to let market. Interested parties then began looking for buy to let mortgages to help them enter the market.
The rise of buy to let mortgage lenders and products
In recent times, banks, building societies, and other lenders have developed buy to let mortgages to cater to every aspect of this market. While you can find these mortgages via traditional lenders, there has been a rise in specialist lenders creating buy to let mortgages to cater for this specific area of the market.
These lenders have partnered with mortgage brokers to reach a wider section of the market. Some are now offering 90% BTL mortgages, and in some cases, they’re doing away with the need to prove a minimum level of rental income to qualify.
Using a mortgage broker to source the right buy to let mortgage
With hundreds, potentially thousands, of buy to let mortgage products across the entire marketplace today, finding the ideal one for your requirements is a tough ask. Far better to speak with an experienced broker who can match your needs to the right buy to let mortgage.
There’s no obligation to speak with a trained broker with an idea of what you’d like to achieve. Buy to let mortgages are far different to regular mortgages for homebuyers, and if you’re new to the buy to let market, it’s difficult to know where to turn to find a competitive deal.
A broker can assess your situation, ask the right questions to help them understand your position, and work on finding a competitive buy to let mortgage from that point. This leaves you free to continue looking for properties too, giving you the freedom to get on with other tasks to make your buy to let dream into a reality.
With the rental market, a landlord is looking to maximise their profit on the property they buy. Choosing the most competitive BTL mortgage they can find is a big part of the puzzle – a puzzle that is easier to complete if you seek out a mortgage broker to help.