Buy to let (BTL) mortgages is a concept that is suitable for people looking out to rent properties. This mortgage option is highly helpful for the ones who are looking at renting, and can be availed with companies like Think Plutus. There are a few technicalities to be understood and you are good to go.
This mortgage option works well with people looking at letting their property. It works well if you are looking at investing in flats or houses. There are a few conditions such as your credit record should be good. You shouldn’t have a stretched credit record with a lot of borrowings on credit cards or other similar facilities.
Annual income of over £25,000 is a prerequisite. If your income is lower than this then it can get difficult to get a BTL mortgage. There are age restrictions too. The upper age limit is 70 to 75 years.
One of the key features of BTL mortgage is its higher rate of interest. A minimum deposit of 25 percent of the original property is taken. This is a flexible number and can vary between 30 to 40 percent as well.
The schemes in BTL are of interest only. What this means is that you do not pay principal amount each month. All you pay is your interest. When the term ends, you pay the full amount back.
There is a certain convenience that comes with BTL. However, before investing in this or any other investment it is advised to do a thorough market research and choose the best option.
