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Author: Ruth Stanhop Article source: http://www.articlealley.com/. Used with author's permission.
Buy to let mortgage is an income producing investment. Buying a house to let can be a safest and profitable method to use your spare cash. Buy to let mortgage can be used for commercial purposes as well as for asset expansion. Buy to let mortgage is a specialised mortgage product and it has grown more than any other market as a whole. Buy to let mortgage was a positive effort by the Associations of Residential Letting Agents (ARLA) to promote growth in private housing sector.
In order to provide support to this sector, monthly rate of interest has been lowered .Buy to let mortgage is necessarily different from other mortgages. The lender will check value of your property, your credit worthiness and the amount of down payment you are willing to pay before he approves your buy to let mortgage. Your mortgage lender would ask your rental details along with your salary description. Different lenders have different criteria .Buy to let mortgages can be taken on more than one property with maximum up to five properties. But you can't take more than one mortgage on the same property.
Usually, buy to let mortgage lenders lend 85 per cent of the property value. The down payment varies from 15 to 25 per cent. If the down payment is larger, you can get better deal. There will be little variation in interest rates of buy to let mortgages and other mortgages. The rental income formula varies from lender to lender. But rental income should not be less than one and half times of the monthly repayments. Buy to let mortgage is a secured loan .Never forget that your property is secured against the mortgage loan. So, late repayment is likely to reflect in your credit report and inability to repay the loan can lead to loss of the property.
For more information visit us at http://www.online-mortgage-uk.com
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