find mortgage and refinancing information Akron Ohio

Channel:

We would like to thank the local libraries, schools, and universities for recommending students to visit us when doing research on any of our information topics.
 Please check back frequently as new topics are added and current topics are updated daily.

 

Choosing The Right Buy-To-Let Mortgage


Buy-to-let took off during the 1990s with the increasing availability of specialist mortgages tailored towards the sector.

For most people investing in buy-to-let schemes, mortgages are a vital component for funding the investment. We consider some important issues to help you choose your mortgage.

Do not borrow more than you can afford

It is important not to overstretch yourself and put both your capital and credit rating at risk. Most lenders will not let first-time buyers take out a mortgage without satisfying themselves that the landlord can afford the repayments on top of other commitments from their regular income.

Some lenders are more prepared to provide mortgages without proof of income and based on the strength of projected income alone, making it easy for the landlord to borrow more than they can afford and leading to potential trouble if interest rates rise or tenant trouble prevents them collecting an adequate rent to cover the mortgage.

Repayment or interest only-mortgages

Landlords have a choice between repayment mortgages, where the monthly payment is calculated to pay both the interest and the capital borrowed over an agreed term or an interest-only mortgage, where the landlord only pays the interest on the mortgage each month, and at the end of the term repays the full amount borrowed in one lump sum.

Interest-only mortgages have the benefit of lower monthly repayments, but remember provisions must be made to ensure the outstanding capital will be repaid at the end of the term.

It is possible to sell the property and use this money to repay the loan, provided the property has either grown in value or at least maintained the same value since the initial purchase.

Variable or fixed rate

Lenders will offer the option of taking out a variable or fixed rate mortgage. Variable rate mortgages follow the interest rate set by the Bank of England. When interest rates rise, the interest on your mortgage repayments will rise. When interest rates fall, the interest on your mortgage repayments fall.

Tracker mortgages are a variant of variable rate mortgages and are usually set in relation to well known market standards.

Alternatively the mortgage lender may offer a fixed rate deal, where the interest rate is literally 'fixed' at an agreed amount for a certain period of time. This type of deal provides a greater level of stability to the landlord, but can be more expensive and less flexible than a variable mortgage.

It is important to remember that buy-to-let is a medium to long-term investment. Try not to be taken in by mortgage products that offer low start-up costs, but actually end up being more expensive over the longer term.

Read the small print

Buy-to-let mortgages are far more complicated than regular home buyer mortgages. It is important to check that your lender does not have restrictions on certain types of let or periods of occupancy.

Restrictions could exist for:

-- Flats above shops or offices

-- Blocks of flats

-- Student accommodation

-- Corporate lets

-- Local authority / housing association lets

Seek further advice

Before choosing a mortgage we would always recommend consulting with your financial advisor and conducting further research.

Don Suter is Managing Editor of the UK Property Portal (http://www.ukpropertyportal.co.uk), an online directory and magazine for UK property sales, rental, surveyors, mortgages, conveyancing, property insurance, removals, news, investment and development

For more mortgage information, follow this link to our mortgage page


TODAYS NEWS BY OFFICEJAX FREE ADVERTISING AND AD EXCHANGE SOLUTIONSMORE RESOURCES updated Wed. June / 03 / 2020
























































News News: What happens when forbearance ends?  Mortgage Professional America













































used office furnishings-supplies-equipment-desks-cubicles-service-counters for sale in Akron Ohio   Die cast model cars for sale in Akron Ohio  
used cars for sale in Akron Ohio   unfurnished homes for rent in Akron Ohio

Click here to
OfficeJax free ad space available here

Find used office equipment in Ohio at www.OfficeJax.Has.It

Find the best fleamarkets at www.FleaMarketWorld.Has.It

www.Akron.Has.It

Find electric powered vehicles at www.NoGas.Drives.It

Akron City directory

Free Automatic Link Exchange

Flea Market World

Find homes for rent
in Akron Ohio
www.homes4rent.has.it

iphone-4-less below wholesale prices

 

Place your AD here. Click here for more details.

Click above to place your AD here

[Back to Top]

Ohio RealEstate

auction news and listings for Akron, Ohio

Akron crafts and hobby news center

best home remedies and do it yourself tips

Akron currency trading

Akron Ohio pet news

Advertising and promotions Akron, Ohio

The Akron blogging news center

Akron Ohio web site design news

Akron Mortgaging and refinancing

Web site design tips

 

HOME | SITE MAP

© 2012 - 2020 All Rights Reserved
Increase pagerank with HitsSurfer

free page rank checker and seo evaluation tools 

first second ARM compare rates find the best rates current in your area lenders read reviews calculator adjustable rate loan home lenders brokers quotes florida houston gmac washington interest only 2nd software debt consolidation reverse senior equity texas maryland options lending bad credit  option one ameriquest chase first banks emc residential california miami dallas est branch marketing home company commercial yahoo online bad credit low credit no credit