If you are considering entering in to the buy to let marketplace, you would be well advised to secure the services of a qualified buy to let mortgage broker. Finding a specialised mortgage for purchasing property that will be used for rental purposes is not as straightforward as applying for a similar residential or personal mortgage, a buy to let mortgage broker will be able to assist you with the entire application process, making sure you steer clear of potential pitfalls, and ensuring that you have the best chance possible of securing the finance you require.
Mortgages used to purchase rental properties differ from standard mortgages significantly, the primary difference is in the algorithm used to calculate the maximum value of the mortgage offer, with this type of mortgage the projected rental income is factored into your overall level of income, meaning you can often acquire funding for a property that you would not otherwise be able to afford on your current salary. The second way in which these specialised mortgages differ is in the fact that they will seldom provide more that 80% funding for the new property purchase, meaning you will need to find a 20% deposit from your own resources. A good mortgage broker will explain these differences to you fully.
A buy to let mortgage broker can perform far more useful tasks than simply helping you apply for your finance, they will be able to assist you in pinpointing the perfect area to begin seeking the correct property, and they can interrogate local market statistics and discern exactly where the most profitable place to buy a property would be. Once the location has been decided upon your buy to let mortgage broker will then help you find the right property. They will advise you to seek a property that requires very little maintenance in the immediate future, and help you contact estate agents and private sellers to locate the perfect house.
Once the target property has been pinpointed, your buy to let mortgage broker will then approach multiple lenders, searching for the lending product which suits your needs most closely. They will then assist you in applying for the mortgage, and will monitor the situation throughout the lifecycle of your application, dealing with any potential problems as they arise. Finally your buy to let mortgage broker could put you in touch with a property management agency, which will assist you by finding you tenants, collecting rents and dealing with all of the day to day business associated with renting your property.
Purchasing self financing properties which will generate revenue and accrue value is a great way to build personal wealth and acquire new assets. A buy to let mortgage broker will become an invaluable tool throughout your entire career as a property investor, providing exceptional advice based upon a wealth of knowledge and expertise in the property rental market.