When you buy a property as an investment it is important to consider what your main priorities are and to compare the choices that are available to you: you may wish to cash in on any future increase in your property's value, or to live off the rental income it generates, or to aim for a situation in whichyou own the property outright, so that eventually all the income generated will go into your pocket as opposed to your lender's!
The different repayment options offered by lenders on buy to let mortgages are suited to different situations: for example, where you wish to earn as much as possible from your property on a monthly basis the cheapest repayment option would be to pay interest only.
On the other hand, where you wish to pay the mortgage off and eventually own the property outright you would normally opt for capital and interest repayment. Your intentions will also have a bearing on the mortgage type you choose: while fixed rates may not always be the cheapest option, fixed rates do allow you to plan your costs with much more certainty than variable or tracker rates.
Whereas with residential mortgages your own personal income determines the amount you can borrow, with buy to let mortgages it is the rental income of the property that is all-important.
This said, to qualify for a buy to let mortgage, you will usually require at least a 15% deposit. Your credit history will also determine how much you can borrow and the competitiveness of the deals that are on offer.
If you are considering investing your savings in property then it is always best to compare buy to let products.
Contact us to discuss your options; let us show you how to use the buy to let mortgage market to get to where you want to go.