Compare Buy to Let Mortgages
A major boom in the buy to let mortgage industry happened between 2004 and 2006 and many people jumped into the field without taking the time to compare buy to let mortgage deals. As a result, when the economy turned and the low variable rates began to rise, many of these people could not refinance and found themselves defaulting on their loans when the rent that was charged would no longer cover the repayment of the mortgage. This caused the mortgage brokers to tighten the requirements needed to be approved for a loan.
Today, the demand for rental properties are high as many people’s homes have been foreclosed on and again, many people are looking to get into the buy to let industry; however now they are pausing to compare buy to let mortgage deals. Besides taking the time to compare there are a few additional tips to heed:
Do your homework: Understanding the ins and outs of the industry is crucial.
Look at location: Choosing the location that will result in the most dependable rental as well as the location that is in highest demand will help assure your success.
Put yourself into the shoes of the renter: Consider the demographic you are targeting and look at the property from that perspective.
Additionally, set aside a few months’ mortgage payments to protect yourself from a tenant who cannot pay rent or when between renters.
Buy to let mortgages could turn out to be very lucrative. make sure it is the best option for you.