Buy-to-let Mortgages

The trend towards people using buy to let mortgages has increased over the past few years and TISCO are well placed to help both landlords, with a portfolio of properties already in place, and people taking their first step into property investment.

The reason for people wanting to enter into the world of buy to let is that rental properties can be a very lucrative investment. Not only is there the possibility of the rent providing a good income but there is also the potential of a capital increase in the value of the property over time.

Buy to Let mortgages often have higher interest rates than residential mortgages with the lenders requiring a larger deposit, which can normally be expected to be around 25% of the property value.

Most lenders take a different approach to the lending requirements with buy to let mortgages and require that the proposed rental income will cover the mortgage payments, often with a monthly rent that is equivalent to 125% of the monthly mortgage repayments.

Please be aware that Buy to Let mortgages are not regulated by the Financial Conduct Authority.

It is recommended that financial advice is used before entering into such a contract. Please contact TISCO for any help in this area and other financial queries at our St Albans office on 01727 734040. Alternatively please feel free to book an appointment either face to face or over the phone using the appointments page. You can visit our main website to learn more about TISCO and the other service we provide at www.tisco.co.uk.