Brighton Buy to Let Mortgages
How does a Buy-to-Let Mortgage Differ?
Rent Potential – When it comes to the decision of whether a buy to let mortgage will be offered to you, it will be based on the rental yield earned from the property and will also take into account your income. In some cases, income won't be a factor at all, it depends on the mortgage deal.
Interest Rate – Compared to standard home buying mortgages, buy to let mortgages will have slightly higher interest rates. This is an important factor to take into account when considering a buy-to-let investment, as you will often see higher mortgage repayment rates.
Larger Deposit – As a general rule you will be required to pay a minimum of 20% or 25% of the property’s value as a deposit.
Tax implications – Before making this investment we encourage you to seek independent tax advice. For residential property investments stamp duty land tax has a 3% surplus charge.
If you are planning on purchasing a second property to let out you need to consider whether your main objective is to earn income or grow capital growth. Decide whether you intend to make a profit each month, or are looking to make a profit through increased equity as the properties value boosts over time. Once you make this choice it will dictate the property you buy and it's location.
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