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Buy To Let Mortgages Hendon
One of the most common ways of buying a property for let is with a Buy-to-Let mortgage.
These are specifically designed for this purpose as most Buy-to-Let mortgages are interest-only, meaning you don’t pay anything off the amount initially borrowed until the end of the mortgage contract when you will repay the total amount.
However, a repayment mortgage is thought to be the less risky type of mortgage. It is worth remembering that Buy-to-Let mortgages can have higher interest rates than other mortgages, but can help you to become a property investor.
We advise that you compare what is available and talk to mortgage brokers who can help you find a suitable deal. Generally, Buy-to-Let lenders will ask for a bigger deposit than for other mortgages, and can be anywhere between 15%- 30% of the property’s value. The more you borrow the more likely the lender will perceive you as a higher risk and charge a higher interest rate – so don’t expose yourself more than you need to. Buy-to-Let mortgages also tend to have tougher conditions than a normal mortgage.
When choosing a mortgage you should think about:
- How much you have as a deposit?
- How much you want to borrow overall?
- Does the mortgage have a product fee?
- The maximum amount you can borrow - this is connected to the rental income. Your mortgage lenders typically need the rental income to be 25%-30% higher than your mortgage payment