Buying property to let has created a boom business in Britain. Low interest rates made mortgages more affordable and rental income has seemed attractive compared with what you could earn on other investments. But now with interest rates rising, the cost of property high and rents failing to keep pace, buy-to-let is a much harder prospect than it once was.
The UK buy to let mortgage market sufferers highs and lows. Perhaps it has become a victim of its own success. However, experts are currently fairly confident about the buy to let market as the noted lack of first time buyers has led to a higher demand of rental accommodation. Buy to let, like other investments, involves an element of risk which must never be ignored or understated.
However, if you go into your buy to let venture with your eyes wide open, then there is no reason why it can not work for you. The main difference with a buy-to-let mortgage is that the lender can take account of the rent you will earn, as well as your income from your main employment. Some lenders are willing for you to add the rent to your salary while others will only base the loan absolutely on rent. Any existing mortgage you have on your own home property will reduce the amount you can borrow under the buy-to-let scheme.
Usually the interest rates on buy to let mortgages are higher than those on standard mortgages, but as we know from experience, interest rates can vary from lender to lender so it is important to compare a range of buy to let mortgages in order to find a competitive rate of interest and the deal to suit your personal circumstances. There are currently numerous, competitive buy to let mortgage deals on the market that are specifically aimed at the buy-to-let sector.
These can range from special offer buy to let mortgage deals or to variable and fixed and rate options. It is of the utmost importance to find the best buy-to-let mortgage rate, as this may determine whether you can or can not afford the buy-to-let investment. The world of buy to let has grown tremendously over the last number of years.
Buying property and financing those purchases needs expert advice. Some see property as a future pension, some are looking simply to supplement their current income and others are buying shrewdly to make money on the future increases in property value.