Non Standard Mortgages - Buy To Let
Buy To Let Mortgages
The number of people buying property as an investment has
ballooned over the last decade. But you can't just buy a
property with a normal mortgage and start renting it out
- letting your property is usually against the terms of
your mortgage agreement. Lenders take a dim view of people
who let out their property without permission and can even
end up serving you notice on the property.
Buy to let is a joint initiative that was originally set
up by ARLA and a small panel of mortgage lenders to help
individuals invest in the residential property market without
having to pay commercial rates of interest on their mortgage.
Whilst the comparative robustness of the residential property
market is the main driving force behind the increase in
the popularity of this type of investment, there is no doubt
that the improvements to the buy to let mortgage products
available on the market have also been an important factor.
There are now around 70 lenders offering range of deals
that now include discounted, fixed, variable, tracker, flexible
and even self certification mortgages, helping to make buy
to let an investment that is accessible to a broader section
of the population.
One of the key things to remember is that buy to let should
not been seen as a short term option, but if you research,
plan and manage your investment correctly, you should end
up making a profit in the medium to long term. It is not
without its risks and involves considerable initial and
ongoing costs including lettings agent commission, management
fees, tax, insurance, legal cover, maintenance and repairs,
service charges, and ground rent.
