A buy-to let-mortgage is when you purchase a second property with the intention of letting it out to tenants. Of course, while it can be a very lucrative endeavour, it is important to make sure you invest in the right kind of property and secure the best mortgage available. Becoming a private landlord should not be seen as an easy way of making money. It can be risky and complicated. It can also be very time consuming, plus there is no guarantee that house prices will rise. That said, having a second property to let to tenants could reap considerable financial rewards over time.
Important Information, Buy-to-Let mortgages have a higher minimum deposit typically 20%-25% of the property value and also come with higher interest rates in comparison to a residential mortgages. The lender’s decision as to whether or not a mortgage will be offered is usually based on the rent you will earn as well as your income. In some cases your income is not ever considered. As the rental income is a very large factor with Buy-to-Let mortgages this should be considered in detail when deciding what property to buy as your investment. It would be well worth talking to a local lettings agent to find out what properties are in demand in your local area and how much to expect in rental income.