Buy To Let Mortgages

This particular area will be mostly of interest to those looking to invest in the property market. The information below acts as a guide only; specific information can be requested via the contact form. Gem Mortgages can, with the correct information of course, provide a much better idea of the types of repayments and interest rates available.

Designed for the property investment market, there is a huge range of buy-to-let products, ranging from special offer deals to fixed and variable rate loans. Be aware that some lenders will only consider your rental income when offering a mortgage, while others will place more emphasis on your normal earnings, especially if you only have one or two rental properties.

The anticipated rental income must exceed the mortgage repayments by a certain percentage, and the lender will also want to ensure that the property is a good long-term investment. Generally buy-to-let mortgages are available for between five and 45 years and for up to 85% of the property value.

When buying a buy-to-let property, don’t forget to consider additional costs such as letting agent’s commission, insurance premiums for building & contents cover, as well as rental & legal expenses cover. Moreover, remember that the property must be kept in a suitable condition for letting, including making sure that all gas and electric appliances are properly tested.

Managing a buy-to-let requires continual monitoring as there is no guarantee that it will be possible to continuously let the property, nor that the actual rental income achieved will be sufficient to meet the cost of the mortgage.

All of this means that costs and due diligence will be required on the part of the borrower, the sum suggested by Gem Mortgages will be one element of the total costs that need to be met on a monthly or annual basis. As a result, this particular type of mortgage would almost exclusively form part of a mid to long term business plan for those looking to purchase a 'non-primary residence'.

It would also be wise to factor the amount Capital Gains Tax incurred if the property is to be sold for profit purposes.