Who Can Get A Buy-to-Let Mortgage?
Most lenders look for a few requirements when it comes to getting a BTL mortgage. Some of them include:
- Age – you have to be above 21 years old
- Annual Income – the minimum you have to be earning is about £25,000
- Deposit – most lenders require a 25% deposit
- Credit history
How are the interest rates calculated?
Interest rates of BTL mortgages are influenced by multiple factors such as:
- Loan-to-value ratio
- Your credit history and affordability
- Changes in the base rate
- Determining fixed or variable rate mortgage
What Can I Do To Get The Best BTL Deal?
Consulting with mortgage advisors and brokers is the first step toward finding your preferred mortgage deal. Learning about the market and finding the interest rates that fit you best can help you make an informed decision.
Before applying, check your credit history which can have a huge impact on your mortgage deal. Also, consider what is the best mortgage for you, whether you prefer fixed or variable rate mortgages and make a plan of how you are going to make monthly repayments.
What to know before getting a buy-to-let mortgage?
There are a few things to keep in mind before you decide to get a BTL mortgage:
- What is your rental income? – you may not have tenants at all times so you need to have a backup plan for “empty periods”
- What are the tax implications? – depending on how much you earn when you rent, you will pay different rates in income tax which is why you need to calculate all kinds of taxes that you need to pay
- What is your loan term? – find out how long you want your agreement to last and what to do if your financial situation changes
Benefits of a Buy-to-Let Mortgage
Investors all around look for buy-to-let mortgages because of the many benefits they offer. Some of them include:
- Generating a steady stream of rental income
- Increasing property value over time
- Diversified portfolio
- Assets that keep pace with inflation better than other options
If you want to keep track of your score, check it with our Buy-to-Let Mortgage calculator. It is a free option that doesn’t do any harm to your credit rating and gives you an insight into the best mortgage deal for you. Contact our team at Revolution Brokers today to get more information.
