Buy to Let even if you have adverse credit

Buy to Let Mortgage - how does it differ from a normal mortgage and why would you want one and what if you have adverse credit can you still venture into the buy to let market.

Buy to let mortgages have become synonymous with Buy to Let investors - people buying property - not to live in - but to let out as the name says.

As yet the Buy to Let Market is not regulated by the F.S.A. (Financial Services Authority)

It's like a home mortgage in that it is normally secured on a property. However one of the differences is the amount that the Lender will advance to you, which is normally 85% of the purchase price, meaning you will have to find a 15% deposit. Again this means that you are able to Self Certify your income.

It is your responsibility to ensure that you meet the monthly Mortgage payments for if you do not then like a normal Mortgage you could end up loosing your property.

Typically a Buy to Let loan has a slightly higher rate of interest than home loan because it is perceived as carrying a slightly higher risk! However, due to the popularity of Buy to Let loans, the market has become very competitive and this has brought down the average interest rate charges considerably, just look at the number of Buy to Lets, rented properties there are in the market.

A Buy to Let loan is appropriate if you intend to let the property for a number of years. However, they may also be appropriate to some landlords/ developers who wish to refurbish property and then either sell or let it out. The key is to ensure that the loan can be repaid without penalty if you change your mind and sell the property instead of letting it.

Typically, your rental income should cover all the mortgage and then 25% on top. However some Lenders on the market no longer take into account the rental income.

Even if you have some adverse credit the Buy to Let market is available to you, but again this will be reflected in the Interest Rate that will be charged by the Lender and their may well be penalties to pay should you redeem your Mortgage within the first 3 years. It is important that you discuss this matter and clearly understand what is involved so talk to Abbey Finance.

We can not promise you a Mortgage BUT we will listen no matter what your circumstances are.

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Actual rate available depends on circumstances ask for personalised illustration. The overall cost for comparison is 7.9% APR. Our representative fee charged is 1.25% of amount borrowed. APR variable and based on a usual case.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE