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Buy-to-let for the future?

One thing is for sure we all need somewhere to live and the rental market is as strong as ever so if you are thinking to invest in Buying-to-let as part of your financial planning Enable’s IFAs can help you look at your options.

The bottom line for investing in property involves understanding if you can afford to take the risks of investing in property. If you want to get a buy-to-let mortgage to invest in houses or flats the following circumstances help; It is good if you already own your own home, outright or with an outstanding mortgage. It is good if you have a good credit record and aren’t stretched too much on your other borrowings like credit cards. It is important to be earning £25,000+ a year less than this means you might struggle to get a lender to approve your buy-to-let mortgage. There are also age limits because of the terms of most mortgages. 70 tends to be the oldest you can be when the mortgage ends not when it starts.

There are many similarities between Buy-to-let mortgages and ordinary mortgages, but there are some key differences: The fees tend to be much higher. Interest rates on buy-to-let mortgages are usually higher. The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value (although it can vary between 20-40%). Most BTL mortgages are interest-only. This means you pay the interest each month, but not the capital amount. The maximum you can borrow is linked to the amount of rental income you expect to receive.
Lenders typically need the rental income to be 25–30% higher than your mortgage payment.

If you are looking to make investments in property using buy to let or planning to help family own property Enable’s experienced IFAs in Bishops Stortford can help you find the right kind of mortgages to help.

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