Buy to Let Mortgages
A Buy to Let Mortgage is one where you're buying a property as an investment, renting it out to tenants. The basic idea is that you cover the mortgage repayments and other costs with the tenant's rent, before later selling the property at a higher price therefore making a profit.
Of course, this only works when the housing market is strong and prices are rising - when prices are falling, buy to let landlords will be losing money, and may have difficulty meeting their repayments.
This means that the amount of buy to let mortgages available has shrunk considerably, although analysts agree that at some point, when the housing market has found its bottom, buying to rent will again become a good business proposition - if not the quick route to riches that many saw it as during the boom years.
Site is for information only and does not constitute financial advice. E&OE.
Consult a mortgage advisor before taking any decisions.
