Becoming a landlord
If you’re a prospective landlord investing in a property to rent out to tenants, rather than purchasing a property as your main residence, you’ll need to take out a buy to let mortgage. These mortgages have many features in common with residential mortgages, but there are some important differences. Usually, you have to already own your own home, whether it be outright or with a mortgage, before taking out a buy to let mortgage.
The main difference between buy to let and residential mortgages is the expense. Your fees, interest rates and minimum deposit will all be higher than for a regular mortgage. Furthermore, whereas with a residential mortgage you have the choice between a capital or interest-only repayment scheme, most buy to let mortgages are interest-only. This means that you only pay off the interest on your mortgage each month and will still owe the full property value at the end of your mortgage term.
The amount you can borrow is linked with your expected rental income. We have a wealth of experience in calculating how much prospective landlords can afford to borrow. We’ll be on hand to take you through the various available options, helping you to find the most suitable deal for your personal circumstances.
Purchasing a second property to rent out is a huge investment requiring careful consideration, and it can be a stressful process. But with CH Capital & Mortgages on your side, it doesn’t need to be. If you’re interested in finding out more about buy to let mortgages or would like us to help you find a suitable deal, please get in touch.
Your property may be repossessed if you do not keep up repayments on your mortgage.
Not all Buy to Let Mortgages are regulated by the Financial Conduct Authority.