Buy to Let Mortgages

Buy to let is no longer the hot property it used to be, and many investors who bought in recent years have struggled as mortgage rates increased.

Existing investors should now be benefitting from lower rates if they have fallen on to their lender's standard variable rate, however, new mortgage deals remain expensive and industry experts acknowledge that now is a tough time for buy to let.

However, with lower property prices, it's still tempting for those who stick to the tried and tested method of investing for rental returns rather than capital growth.

If investors are willing to see the value of their property slide in the short term and ensure their property meets the criteria of at least 75% to 80% loan-to-value and returning 125% of monthly mortgage payments, buy to let might continue to be a good long-term investment. However, it should be noted:

• Past performance is not a guide to future performance. The value of property investments and income from them can go down as well as up and investors may not get back the amount originally invested.
• The value of a property is generally a matter of opinion and the true value may not be recognised until the property is sold. It may be difficult to sell or realise the value of the property in adverse market conditions.
• Borrowers will still be responsible for maintaining the payment of any mortgage in the event that the property is not rented out and therefore may wish to make suitable provision for this event.
• Legal advice and advice on tax issues may be required before purchasing a property to let.

Like any investment, buy to let comes with no guarantees, but might be more reassuring for those who have more faith in bricks and mortar than the stock market.

The Financial Services Authority does not typically regulate Buy To Let Mortgages.

Your property may be repossessed if you do not keep up repayments on your mortgage.

As Independent Mortgage advisers we always offer the option to pay for our services either via fees or commission. Where the commission option is chosen you will not be asked to pay any fee to us unless the best lender is one of the few who do not offer introducer fees to brokers. In such circumstances where the lack of broker commission results in your having to pay a fee - or where you choose to do so to help reduce your overall mortgage costs - we typically charge 0.35% of the loan amount. On a loan of £100,000 this would mean that you may be charged a fee of £350. A minimum fee of £250 will apply. Fees become due upon completion but will be chargeable, and thus invoicable, upon receipt of an offer. You will receive written confirmation of any such chargeable fee before proceeding.