The property industry is one which comes with a huge number of terms, many of which can be initially difficult to understand. Here at Garness Jones, we strive to make sure our tenants, landlords or potential tenants and landlords have the information they need available to them to deal with all matters relating to their property, whether they’re renting it out or renting it themselves. In our new ‘EXPLAINED’ series, we’re seeking to do just that.
If you’re just starting out as a new landlord and need to borrow to secure your investment, you’ll need a buy-to-let mortgage.
Whilst the process of applying for a buy-to-let mortgage may be similar to applying for a residential mortgage, there are some key differences, which include:
Investments can be risky, so if you’re concerned about not being able to take the risk when it comes to a buy-to-let mortgage, then it’s preferable to hold fire until you’re absolutely sure. That said, property is still a good investment and can offer a much better return than money kept in the bank. Despite the initial costs, you just need to make sure you’re making the right investment at the right time for you.
Already owning your own home is almost essential, as securing a buy-to-let mortgage is unlikely if you’re renting your own home or for some other reason do not own your own property yourself, including if you have an outstanding mortgage on it.
Broadly speaking, earning less than around £25,000 / year could restrict you from securing a buy-to-let mortgage from a lender, whilst having a good credit record which demonstrates that your own borrowings haven’t stretched you too much will only help your case.
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