Buy to Let Mortgage Tips from the Professionals!

<h1>Buy to Let Mortgage Tips from the Professionals!</h1>Author: <a title="Elizabeth Grant" href="http://www.articlesbase.com/authors/elizabeth-grant/2668.htm">Elizabeth Grant</a> Buy to Let investment can yield a significant profit if undertaken in the right way at the right time and this is one of the reasons that Buy to Let investment has become increasingly popular in recent years. Low interest rates have made Buy to Let mortgages more affordable, and rental income has seemed more attractive than possible earnings on other investments. If you are thinking of investing in Buy to Let then why not have a look at some of our Buy to Let tips found below.
 
Buy to Let Mortgage Tips
•The Application - One of the main differences you will come across when applying for a Buy to Let mortgage is that the mortgage lender will take into account the rental income you will receive as a result of the letting as well as your normal income. Some lenders will consider the rent money on its own whilst others will consider both the rental money and your salary. 
•Interest Rates - A Buy to Let mortgage may be more expensive than a standard mortgage. Generally Buy to Let mortgage rates have decreased as the amount of Buy to Let mortgages on the market have increased but on the whole the Buy to Let mortgage rates are still higher than the standard mortgage. 
•Deposit - Generally the amount of money required for the deposit on a Buy to Let mortgage is higher than with a standard residential one. On the whole the lenders will require a minimum of a 15% deposit. It is also worth noting that the more deposit you put down, the more competitive the proposed Buy to Let mortgage deal will be. 
•Rental Income - Many buy to Let mortgage lenders require that the projected rental income exceeds the mortgage payment by a minimum of 125%. This amount can sometimes go up as high as 150%. 
•Equity - If you already have a mortgage on the property that you are living in, and are considering taking out a Buy to Let mortgage on another property then it is worth bearing in mind that you may be able to free up some of the equity in your home to put down as a deposit on the property you are planning to let. It could be worth raising this with the mortgage broker you visit. 
•Profit - The biggest tip we can give you on how to ensure that you make the profit you require on your Buy to Let property is to regard the Buy to Let adventure as a long-term investment. If you are looking to make a quick buck then the Buy to Let market is not the one for you. 
•Tax Relief - Although there is no direct tax relief on a Buy to Let mortgage, you can offset interest payments on your mortgage against tax on rental income, along with other expenses such as agents' fees and maintenance costs.
About the Author: Elizabeth Grant writes exclusively for <a href="http://www.the-mortgage-broker.ltd.uk">The Mortgage Broker</a> specialist mortgage websites. To read more of Elizabeth 's articles on Buy to Let Mortgages please visit the <a href="http://www.buy-to-let-centre.co.uk">Buy to Let Centre.</a>Article Source: <a href="http://www.articlesbase.com/">ArticlesBase.com</a> - <a href="http://www.articlesbase.com/finance-articles/buy-to-let-mortgage-tips-from-the-professionals-16471.html" title="Buy to Let Mortgage Tips from the Professionals!">Buy to Let Mortgage Tips from the Professionals!</a>

Buy to Let investment can yield a significant profit if undertaken in the right way at the right time and this is one of the reasons that Buy to Let investment has become increasingly popular in recent years. Low interest rates have made Buy to Let mortgages more affordable, and rental income has seemed more attractive than possible earnings on other investments. If you are thinking of investing in Buy to Let then why not have a look at some of our Buy to Let tips found below. Buy to Let Mortgage Tips

•The Application - One of the main differences you will come across when applying for a Buy to Let mortgage is that the mortgage lender will take into account the rental income you will receive as a result of the letting as well as your normal income. Some lenders will consider the rent money on its own whilst others will consider both the rental money and your salary. •Interest Rates - A Buy to Let mortgage may be more expensive than a standard mortgage. Generally Buy to Let mortgage rates have decreased as the amount of Buy to Let mortgages on the market have increased but on the whole the Buy to Let mortgage rates are still higher than the standard mortgage. •Deposit - Generally the amount of money required for the deposit on a Buy to Let mortgage is higher than with a standard residential one. On the whole the lenders will require a minimum of a 15% deposit. It is also worth noting that the more deposit you put down, the more competitive the proposed Buy to Let mortgage deal will be. •Rental Income - Many buy to Let mortgage lenders require that the projected rental income exceeds the mortgage payment by a minimum of 125%. This amount can sometimes go up as high as 150%. •Equity - If you already have a mortgage on the property that you are living in, and are considering taking out a Buy to Let mortgage on another property then it is worth bearing in mind that you may be able to free up some of the equity in your home to put down as a deposit on the property you are planning to let. It could be worth raising this with the mortgage broker you visit. •Profit - The biggest tip we can give you on how to ensure that you make the profit you require on your Buy to Let property is to regard the Buy to Let adventure as a long-term investment. If you are looking to make a quick buck then the Buy to Let market is not the one for you. •Tax Relief - Although there is no direct tax relief on a Buy to Let mortgage, you can offset interest payments on your mortgage against tax on rental income, along with other expenses such as agents' fees and maintenance costs.

Elizabeth Grant writes exclusively for The Mortgage Broker specialist mortgage websites. To read more of Elizabeth 's articles on Buy to Let Mortgages please visit the Buy to Let Centre.

Rate this Article:

0 / 5 stars - 0 vote(s)

Re-Publish

Article Source: http://www.articlesbase.com/finance-articles/buy-to-let-mortgage-tips-from-the-professionals-16471.html

Article Tags: Buy To Let Mortgage

Related Videos
Related Articles
Ask / Related Q&A

Play

How to Sign up for a Quicken Online Account

Play

Understanding Adjustable Rate Mortgages

Play

Understanding Fixed Rate Mortgages

Play

Types Of Mortgages

Play

Key Obstacles Related To Getting A Mortgage

Latest Finance Articles
More from Elizabeth Grant

Get Forex Juggernaut while its still available!

By: Rob Trader | 08/01/2010
What an amazing start to 2010, the day for which we waited with a child’s like enthusiasm for has finally arrived. Next Generation FX trading is finally revealing their secret to the world! Forex Juggernaut is now officially out in the public domain.

Using Fast Payday Loans in Emergencies

By: John Velazco | 08/01/2010
When the need is urgent and you need instant cash time becomes of essence and you cannot afford to waste time as time costs money. Urgency depends on the situation that has cropped up which you are not prepared for. Life is full of uncertainties and some untoward incidents can...

Key to Options Trading Success

By: Jason Ng | 08/01/2010
Lately, I have been asked about what I think is the single key that determines if you would make it as a rich man in options trading. This is an extremely interesting question as I am not someone inclined to believe that any single reason constitutes to the success in anything...

Don't Trust Tecnical Indicators Blindly!

By: Ahmad Hassam | 08/01/2010
There many technical indicators that you can use while trading. Trading without properly mastering these technical indicators can make you lose one trade after another. What you need to do it find three or four technical indicators that fall within your comfort level, master them and then use them in your trading. Trading without mastering technical indicators is impossible. Now almost all traders use them!

Learn More About Fixed Rate Loans and Variable Rate Loans

By: Eva Judge | 08/01/2010
As if buying a new home isn't confusing enough, trying to secure the right type of home loan can be an absolute nightmare. Beyond the intricacies of deciding between various mortgage lengths and down payments, you'll have to decide whether to go with a fixed rate or a variable rate mortgage.

Competitive Car Loan Rates

By: Bhavana Jhingan | 08/01/2010
The way home loan are dropping day by day, the rates of car loan is also dropping. ICICI Bank had cut auto loan rates by 25-50 bps to 9.5%- 11.5%. Now Axis bank did the same, they have reduced the basis points by 50-75. Now you can take a car loan from axis bank @ 10% -10.5% depending upon the category of the vehicle and tenure of the loan.

Payday Loans - They Are Easy to Apply For

By: John Don | 08/01/2010
There are a lot of things that you can do with money. Almost anywhere, you have to use money in order to accomplish something. Whatever the situation may be, it is most likely that you have to spend money. From emergencies to celebrations, money is important. There are certain occasions...

Unsecured loans bad credit: Help for imperfect credit score people

By: Rosine Belmont | 08/01/2010
These loans offer happy go lucky way. Any type of borrowers can apply for these loans without worrying about credit check and collateral.

CCJ The End Of Your Credit Road? How A CCJ Mortgage Can Help

By: Elizabeth Grant | 10/04/2008 | Mortgage
There is nothing worse than County Court Judgements, things get so bad that your creditors have to drag your debt disputes through the courts for all to see. Some might think its the end of the road but they would be wrong. A CCJ mortgage could not only save your home, but could be the first of a long line of good financial decisions that will see you back on your feet.

Where Can I Find the Best Lender for Bankruptcy Mortgages?

By: Elizabeth Grant | 09/04/2008 | Mortgage
There are many ways to search for a good adverse mortgage lender. A bit of channel hopping during the day a you will be inundated with lenders offering bad credit mortgages, or go online and be met with thousands of websites promising cheap online deals. But bankruptcy mortgages are special and need a special type of lender who can make them work. So where is the best place to search for them?

Bad Credit Mortgages Can Be The Best Way to Clean up Your Credit

By: Elizabeth Grant | 09/04/2008 | Mortgage
Maybe you have been turned down for a mortgage, loan or credit card recently and its probably because you have bad credit like millions of Brits. There is no doubt about it, the UK is swimming in bad debt. But if you want to pull yourself out of this quagmire and get back to winning ways, you can with bad credit mortgages.

Is the Internet the Place to Find the Best Offset Mortgage?

By: Elizabeth Grant | 08/04/2008 | Mortgage
There is no doubt, the business world is going online and financial products are no exception. Banks and other lenders are spending billions on making sure that everything they offer is only a touch of a button away. But when it comes to finding mortgages, is the Internet the best place? Will you find the best offset mortgage online?

Are Offset Mortgages The Best Mortgages Around?

By: Elizabeth Grant | 08/04/2008 | Mortgage
A recent study into UK mortgages found that one in ten Brits have taken out offset mortgages. Thats over 23.9 billion pounds worth of loans. So with all this interest in offsetting or taking out a mortgage that can make your money work for you, are they the best choice around?

Can I Still Find a Good Adverse Credit Mortgage?

By: Elizabeth Grant | 08/04/2008 | Mortgage
The credit crunch, which has seen the US mortgage market crumble in the last six months, has finally hit the UK and things are not looking good for our mortgage market. Recently, most UK mortgage lenders announced that their rates are set to soar by more than 0.5 percent, with many pulling many of their mortgages, especially adverse credit mortgage products, at a few days notice.

Got Savings? Using an Offset Mortgage to Make them Work Harder

By: Elizabeth Grant | 08/04/2008 | Mortgage
Its good to know that in the face of global financial meltdown and credit crunches, figures show more Brits are saving more. If you are one of these people who have gone against the credit trend and saved rather than spent, why dont you make the most of all that hard work and offset the savings against your home loan with an offset mortgage?

Top Five Tips to Compare Offset Mortgages

By: Elizabeth Grant | 08/04/2008 | Mortgage
When searching for the best offset deals, it is vitally important to shop around. Because the UK mortgage market is so vast, there is a real need to compare offset mortgages against each other, take your time and know exactly what you are looking for. Only then can you weigh up each point and decide which deal will be right for you.