Why It's Important to Shop Around for Buy to Let Mortgages
When you start investigating the different available options for landlord mortgages, you'll quickly learn that there are a number of significant differences from one lender to another. Some buy to let lenders place restrictions on the number of properties an individual investor may finance. This is fine for individuals who only plan to purchase a few investment properties, but is less appealing to those whose goal is to build an impressive portfolio of buy to let properties.
In addition to watching for limitations on the quantity of properties one can finance, it's also important to take a look at the total portfolio limit the lenders you are considering applies. If you don't plan to purchase a large number of properties or invest in high dollar commercial estate property, the limit may not matter to you. However, investors with numerous holdings might be well served to avoid choosing but to let lenders with portfolio limits of £3 million to £5 million. Going with a lender that offers a £10 million ceiling, or even unlimited cap, might be best for those who plan to invest aggressively.
Lenders also have different age and income requirements for buy to let investors. Some lenders require only rental income to prove affordability for buy to let mortgages, as these types of loans are intended to be self funding. Other lenders will verify that borrowers have at least a certain amount of provable income not tied to rental income. Additionally, while it seems that all lenders require borrowers to be at least 18 years of age, some won't consider making landlord mortgages to individuals less than 25 years old.
When researching buy to let mortgages, don't make the mistake that qualification requirements will be the same with each lender that appeals to you. Make sure you understand what each lender requires so you can make and educated decision regarding where you are most likely to get the buy to let mortgage funding you need.
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