A General View Of
The Buy To Let Market

Several Mortgage lenders offer the residential landlord a choice of market leading Buy to Let mortgage products for all types of Buy to Let property and with a variety of mortgage interest options

In the past anyone looking to purchase a property with the sole intention of letting it out was forced to go for commercial mortgage, which was quite expensive. That has now all changed, with the boom in the property market more and more mortgage providers offer a variety of specialist buy to let mortgages

In the summer of 2003 the United Kingdom buy to let mortgage market alone was estimated to be worth more than £40 billion, as more and more people have decided they want to take the next step up the property ladder or build up a nest egg for the future

In Spain, which has a massive market for buy to let the growth has been staggering. Investors snapping up several properties at a time and letting them to both short and long term clients, in beach,country town and moutainous areas.

Cyprus too has seen a large increase in the number of locals and foreigners who are snapping up properties for buy to let

The latest country that may well see huge growth in this market is Bulgaria, where properties prices are very cheap at the moment compared to the US and European countries

Banks and building societies will calculate your buy to let mortgage in a number of different ways, with some relying solely on the rental income you can expect to receive, while others will combine your salary with the expected rent. The amount of deposit needed also can vary substantially between lenders, and can vary from 10% to as much as 25%

If your main reason for purchasing is to see your capital grow, and you're not in a hurry to see the mortgage fully paid off, then you may decide to consider a repayment mortgage

On the other hand because the interest paid on a mortgage can be offset against tax, you may find that an interest only mortgage may be the better alternative

When letting out your property, the income you receive may well have various tax implications. It is worth employing a professional local advisor to help in these situations

Once you have found your buy to let property, you will need find clients and to maintain it, either yourself or find a maintenance company to act on your behalf, usually the latter is the better option. It will cost, but could save you quite a few headaches