Why purchase a Buy to Let property?

 

 

 

Buy To Let Mortgages have increased in popularity over recent years. The main reasons behind this are:

 

  • The potential for excellent long term capital growth.
  • An additional source of income for retirement.
  • High demand for rental accommodation due to an increasing UK population, increase in single occupancy homes due to a high divorce rate, and a growing number of students taking  degrees.
  • Having a property as an alternative investment to an existing investment portfolio.
  • More lenders having entered the market leading to more competitive, specifically-designed, accessible buy to let mortgages.

Buy to Let mortgages differ to ordinary residential mortgages in 3 main ways:

Rental – lenders will assess your buy to let mortgage based upon the rent you are likely to receive as well as your income. In some cases your income is not ever considered.

Interest Rate – Buy to Let mortgages tend to have a slightly higher interest rate.

Larger Deposit – a buy to let mortgage will typically require a minimum deposit of 25% of the property’s value.

When purchasing a buy to let property you will need to decide whether your primary objective is income or capital growth. Your decision may affect the type of property you purchase, the location and whether you opt for a repayment or interest only mortgage.

Please Note: The Financial Services Authority does not typically regulate Buy to Let Mortgages.

 

 

Capital & Interest or Interest Only Mortgage ?

 

Your home may be repossessed if you do not keep up repayments on your mortgage.

 

 

Head office

Seaway Insurance Consultants
55-57 Havelock Road
Torquay
TQ1 4RQ

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For mortgages you can choose how we are paid. A fee of £500 on completion. We will also receive commission from the lender. The fee is only chargeable if the commission payable by the lender to us is less than £500, in which case the fee you pay to us is £500 less the commission payment we will receive from the lender. The commission (procuration fee) is stated in the Key Facts Illustration for each mortgage product. Seaway mortgages is a trading name of Seaway Insurance Consultants Ltd (GI). Seaway Insurance Consultants is an appointed representative of TenetConnect Services Limited, which is authorised and regulated by the Financial Services Authority. TenetConnect Services Limited is entered on the FSA register under reference 150643. The guidance and/or advice contained within this website is/are subject to the UK regulatory regime and is/are therefore primarily targeted at consumers based in the UK. Seaway Insurance Consultants is registered in England and Wales No. 4244052.