Recent years have seen low interest rates which have made buy to let mortgages much more attractive, especially when compared to other types of investments. Warren & Co have access to a vast array of Buy To Let Mortgage Lenders to make sure you have access to the best deals on the market.
Buy to Let mortgages are a great way to diversify investment or supplement pension income with regular rental contributions. UK investors are seeing a wealth of new products being developed to meet their increasing needs, by lenders who are looking to grab a larger market share of this growing sector. These products include deals which have been specifically tailored to suit first time landlords, limited companies, properties in need of light refurbishment and Houses of Multiple Occupancy. Some Buy to Let mortgages are now being offered on deals up to 80% for both purchases and re-mortgages.
Let to Buy
You can choose to move home, whilst also keeping your current property to rent out. You can choose to raise money against your current home, to use as a deposit on a new one. The rental income will then cover the mortgage payments, which frees you up to make the payments on your new home. Not all lenders will allow this, and so it is important to seek advice before applying.
Consent to Let
Consent to Let is where you approach your existing lender informing them that you intend to rent out your existing home. You might want to take this route because of a temporary job move or you want to buy another property quickly without selling yours. In the past most lenders have been very helpful, letting you retain your existing mortgage product/rate and only charging a small administration fee.
The majority of lenders now are far stricter on permission to let mortgages. They will grant permission for 12 months and review annually, increase the rate and may charge a substantial fee.
Before letting out a property you own, there are a number of steps you need to take. Failing to notify your mortgage lender, insurance provider or HMRC that you are letting a property could lead to very serious consequences, including repossession of the property
Currently, landlords can gain tax relief on the interest portion of their Buy To Let mortgage payments.
Watch this space for information about the changes regarding tax relief and the new classifications of Buy To Let properties.