BUY TO LET MORTGAGES

Buy-to-let mortgages are homeloans to buy an investment property. A few years ago most lenders wouldn't consider this type of lending as they saw it as far too risky, and very much a niche market. However times have changed, the buy-to-let market is growing steadily so more and more lenders want a piece of the pie.

Therefore rather than just the specialist lenders there are an increasing number of the traditional high street lenders coming into the market. The increased choice is always good for the potential borrower, rates are improving and lending criteria is being relaxed.

The types of buy-to-let mortgage and buy to let remortgage on offer vary from special-offer deals to flexible and variable-rate loans. Some lenders will allow you to remortgage the last property to finance the deposit on the next one. It is tempting for this reason to stay with the same lender if you are planning to invest in a portfolio of properties. It's a matter of choice but some people prefer not to have all their eggs in one basket.

A lot of lenders will only lend on a maximum of 5 or 10 properties, so it's important to choose one that will allow you the scope to grow your portfolio. You should also bear in mind that they have maximum lending limits regardless of the number of properties.

The housing market is bouncing back, according to some surveys. The fact is, whether asking prices are rising, falling or just asleep, people still want and need rental property. Therefore those who approach the investment side of the property market, as a medium-long-term proposition, as opposed to a get rich quick scheme will tend to come up trumps.

Unlike residential mortgages buy-to-let loans are NOT regulated. Therefore make sure you use a regulated mortgage broker who is qualified to give you advice.

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