We all want a home of our own. In Europe renting a house is very common and most don´t want to buy a house – 15 years ago. But in Britain, homeownership became a dream for most people. We have heard about these loans with different names, but the one we were looking for was a buy-to-let mortgage. So what is a buy-to-let mortgage?
A buy-to-let mortgage allows you to borrow money to buy a property with the intention of renting it out. They can be used for a wide range of properties, from residential flats to purpose-built letting property, as long as you have permission from the landlord or tenant managing agent. There are many reasons why people choose to buy a property that they will rent out, the obvious advantage is that you can make a profit where traditionally there would be none.
Getting your first mortgage is an exciting step in your life. However, when you start researching, you may find yourself confused about the terms “buy-to-let” and “investment” mortgages. You may even think these are two words for the same type of mortgage. This is common because most UK lenders use the term “buy-to-let” incorrectly to describe investment mortgages, especially when describing different types of mortgages themselves.
A buy-to-let mortgage is a type of mortgage that is designed for investors who wish to purchase and rent out properties with the intention of making a profit. Most mortgages can be split into two distinct camps: those that are designed to help you purchase a property and the property to live in it (known as ‘residential mortgages’), and those that are designed for investors, who own more than one property. These are known as ‘buy-to-let’ mortgages.
A buy-to-let mortgage is a mortgage specifically designed for landlords to buy residential property to let out. It is similar to a standard mortgage except that it often features a higher loan-to-value ratio, meaning the amount borrowed is higher than the value of the property being purchased. This is because landlords are seen as being more creditworthy than many other potential borrowers because they have an asset which they can sell if their business fails
There are some benefits of Buy-to-Let Mortgages. This is a type of mortgage that has been designed for those who wish to make some money by renting out a property that they have purchased. The main benefit of a Buy-to-Let Mortgage is that it allows you to buy a property with a deposit as low as 5%. This means that you will have to pay less money upfront and start making money from your initial investment much faster
There are a number of benefits associated with buy to let mortgages and one of the most obvious ones is that you can make a return on the property. Another benefit is that if you have been looking to move up the housing ladder, but have been unable to achieve this due to financial constraints, then a buy-to-let mortgage could help you achieve your goal.
Weybridge Mortgage Broker and Adviser is a leading UK mortgage broker based in Weybridge. The company has been offering professional services to individuals looking for a mortgage or remortgage. The firm provides mortgages of all kinds, including residential, second charge, buy-to-let, equity release and bridging finance. Weybridge Mortgage Broker and Adviser also offer financial advice on matters related to mortgages.