Buy To Let Information on Borrowing Rules
It is usually up to the lender on the amount of money that you will be able to borrow on your buy to let mortgage. Typically the most that a lender will provide with the mortgage is eighty five percent of the price of the property. Most investors will have to have a fifteen percent deposit to buy their investment property. Those investors who can put down more on the property will have much more competitive interest rates available.
Buy to let information about these investment opportunities will also tell you that the lender will take into consideration the amount of money that you will make on the property. The amount of the rental income should be between 125% and 150% of the amount of the mortgage payment. Lenders will also use a formula that includes your salary from your job and the rental income, but again, it depends on the lender.
Shop around for your buy to let information and mortgage. Overall the interest rates are higher on a buy to let mortgage than they are on a traditional home loan. There may be a better price that you can negotiate when you shop around for your buy to let mortgage.
May 21 2009 08:23 pm | finance
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