finance guides

These mortgages which are for property investment, are designed for investors who want purchase property for the rental market. Buy to Let (BTL) Lending Guidelines Below are some of the main things investors will need to consider when approaching lenders. BTL Deposits – a minimum deposit of 25% of the value of the property is the accepted norm. BTL Payment Methods – traditionally, investment mortgages were taken out on an interest-only basis which meant that only the interest on the mortgage loan is paid each month while the original mortgage sum remained owing at the end of the mortgage period.This gave the investor two advantages, firstly the interest payments were low allowing the rental income to provide a positive return and secondly, property values traditionally rose and the property could be sold at the end of the mortgage term, leaving the investor with a substantial profit as the property would have been self funding Read more