Buy to Let Mortgages are designed for landlords that are buying specifically to rent out.
This type of mortgage is usually more expensive than a standard mortgage and are only for those who was to invest in buy to let.
Investing in property is risky and therefore it should only be entered into if you can afford to take that risk.
Generally, an individual will struggle to get a buy-to-let mortgage if they don’t already own their own home, whether outright or with an outstanding mortgage. A good credit record is essential as well as not being stretched too much on other borrowings such as an existing mortgage and credit cards.
Buy-to-let mortgages are similar to ordinary mortgages but with key differences such as the interest rates on buy-to-let mortgages tend to be higher, the minimum deposit for a buy-to-let mortgage is usually at least 25% of the property’s value (this could vary from lender to lender) and finally the fees on buy-to-let tend to be much higher.
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