What Is Buy To Let Mortgage And How One Can Get It?
Abstract
About Buy To Let Mortgage In recent times many people are looking to purchase investment properties to have a passive income by putting the properties on rent. What Is Buy To Let Mortgage? A buy to let mortgage is a mortgage taken on a property that the borrower rents out to make a profit. BTL mortgages have a higher rate of interest and stricter lending guidelines compared to conventional mortgages, including a higher down payment. How Does A Buy To Let Mortgage Work? To get a BTL mortgage, the borrower needs to meet basic requirements as listed below: As mentioned above, you will need a minimum of 25% down payment to buy an investment real estate property depending on your credit rating. If you do not have enough down payment to qualify for a conventional BTL mortgage, using FHA or VA loan for buying an investment property may lower your down payment requirement. Where To Get Buy To Let Mortgages? There are many options if you are looking for a BTL loan for your investment property purchase. Even if you decide to go with buy to let mortgage, you need to see that you are making enough profit over your mortgage and property costs.
