Buy to let Mortgages are highly popular nowadays and this is based on many reasons. First off, property is a very good long term investment and this is especially true when stock markets are volatile. We are dealing with mortgages that come with low interest rates and this immediately translates in an alternative investment that is very attractive. Population number is rising and we are also noticing high divorce rates combined with a constant growing number of students. A lot of rental accommodation demands appear daily. Buy to let mortgages are also popular as mortgage lenders will offer specifically designed and competitive mortgages in order to allow the landlord to have an easier life with his investment.

In the past we only had one type of buy to let mortgage, one that came with variable rates. With the recent positives in the market, we now have the advantage of being offered variations and we can say that a whole range of buy to let mortgages are available from trackers and flexible rates to discounts and fixed rates. On the other hand we also need to understand that there is a need for security for mortgage lenders. Most of them will require you to deposit around 15% and this amount will be a main factor in determining the amount of money you can borrow. Also, most lenders will also require you to have the rent of the property cover 125% of the mortgage payments you need to do. There are also some lenders that accept 100% but as you can imagine this can be a tough investment in terms of security. By demanding a percentage to be met with rent we are dealing with security against rental voids. Most buy to let mortgage investors are looking for interest only mortgages in order to pay off interest owed to the lender without the outstanding capital. You can repay this on the sale of the property, if you wish to do this in the future.

Talking about investors, when dealing with buy to let mortgage investors, you will see that two types are present: those that are professionals and amateurs. Professionals usually have a portfolio that can even reach hundreds of properties and the amateur investor usually owns one or two. No matter the investor, we do have the same principles: you have to purchase the right property and then obtain the finance needed for it. It is as simple as that and combine it with never forgetting your responsibilities as a landlord