Think carefully before securing other debts against your home.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Mortgage Glossary
- Mortgage Glossary Choices:
- 100% mortgage
- Arrears
- Buy to let
- County Court Judgements
- Defaults
- First time buyer
- Flexible mortgages
- Individual Voluntary Arrangements
- Keyworker mortgages
- Let to buy
- Non status
- No deposit mortgage
- No proof of income
- Self build
- Self certification
- Self employed mortgage
- Underpayment
Most Buy to Let mortgages are not regulated by The Financial Services Authority.
Buy to let
Buying to let could supply you with a regular income in the form of rent and a large asset with the potential to increase in value. The Buy-to-Let mortgage has made building a property portfolio more accessible to more people.
The difference between a regular mortgage and a buy to let mortgage
The advantage of a buy to let mortgage is that the mortgage lender will consider your rental income when calculating your ability to repay the loan. So you may be able to borrow more money based on the fact that your income will increase after you have secured the mortgage. This means that your potential rental income will be a factor in the lenders risk assessment.
Many lenders now offer specialist buy to let mortgages with fixed interest rates.
When considering taking out a Buy to Let Mortgage on an investment property, it is always prudent to consider some of the downsides, such as
• There may be void rental periods when the property is not tenanted and so no rent is received.
• There could be a decrease in rental income due to adverse economic conditions or as a result of a substantial increase in the supply of rented accommodation in a particular area.
• Interest rates could increase on any loan taken to acquire the property, without a corresponding increase in the rental income to cover that interest.
• There could be a fall in the value of the property - if the property has to be sold, you might not get back all you have paid.