Buy to Let Marketplace

The current characteristics of Buy to Let mortgage products tend to be:

Unlike residential mortgages which will be calculated on the basis of the applicants salary, Buy to Let mortgages operate differently, the mortgage lender applies a rent to interest cover calculation. This means the borrower must be able to prove they can obtain enough rental income from the tenant to cover the interest on the mortgage; the rental cover percentage will vary between lenders, the monthly rental will however need to be between 100% and 130% of the monthly interest payment.

The decision of whether an investor chooses an interest only or repayment Buy to Let mortgage will very much depend on the individuals investment strategy. Repayment is suited for the investor using property as an alternative pension plan or looking to build a small property portfolio whereas with an interest only strategy the investors aim is to continue building their portfolio, by choosing this strategy the investor is able to re-gear their property capital in order to increase their number of properties.

According the CML (Council of Mortgage Lenders) at the end of the first half of 2006 there were 767,200 Buy to Let mortgages worth £83.9 billion, a 20% increase in value over the previous half year.  Buy to Let lending continues to account for 8% of total outstanding residential mortgage lending.

As a leading mortgage broker, Mortgages for Business is independent of lenders and therefore are impartial, so we will be able to use our expertise to recommend the correct mortgage for you. Before selecting a mortgage broker it is essential to check that they are independent, otherwise you may not receive unbiased advice. Mortgages for Business offer a broad range of Buy to Let mortgages specifically designed to suit the varying needs of the investor. 

Buy to let mortgages are not regulated by the FSA (Financial Services Authorty), unlike domestic residential mortgages but an indepedent Buy to Let mortgage guide is available on the following link, from the FSA on the following link FSA - Buy to Let Mortgage Advice

It is essential for Buy to Let landlords to keen abreast of property prices, Mortgages for Business suggest good place to start is the Land Registry, where list the most up to date house prices by completions rather than valuations.  

For regular news on the Buy to Let market as a whole and new Buy to Let mortgage rates when they come onto the market, join the Mortgages for Business mailing list.  To join simply click here, so you can keep up to date with new developments in the Buy to Let marketpalce.

For further information about the Buy to Let market and its origins and for an independent view of the Buy to Let market, you may wish to visit The Joseph Rowntree Foundation

For current statistics on the Buy to Let market please click here Buy to Let CML

For further information on please click here Landlords buildings insurance

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Property Hawk is a FREE site that incorporates advanced online property management software and a extensive buy to let portal, including a magazine, forum and online book. The software enables users to create and save AST¹s, and includes a digital rent book and full accounting software. Click here http://www.propertyhawk.co.uk/ 

Landlord Action is the original fixed fee tenant eviction company serving England and Wales recovering rent and property from bad tenants. Fixed fees which include everything - courts, solicitors, advocates, bailiffs and VAT. Click here http://www.landlordaction.co.uk