With rental prices skyrocketing in the UK in 2022, 2023 may be the perfect time to take on a new venture, especially with the help of buy-to-let mortgages. Unlike residential mortgages, which are designed solely to finance your own living space, buy-to-let mortgages are instruments to purchase a property that can then be rented out.
Usually, the amount of money you are allowed to borrow is based off of the estimated rental income you can expect to receive from tenants. Unlike residential mortgages, buy-to-let mortgages are typically interest-only – meaning only the interest payments are made instead of both the interest and the full loan amount.
The cost of a buy-to-let mortgage varies depending on a few factors, such as the size of the deposit you are able to put into the property. Since the only payments you would need to make each month are the interest payments, this can ultimately be a cheaper option than residential mortgages. However, bear in mind that at the end of the loan term the full amount of the mortgage still needs to be repaid in full.
Whether you are completely new to the buy-to-let market or a veteran, there are plenty of options out there that cater to your needs. To find out more, consult a professional adviser who can provide the best outcome and guide you through the process. Get in touch with an expert today and take the plunge!