Buying a house usually means having to apply for a mortgage, which can incredibly intimidating for many people. There are so many different types, so it is important to understand which one is the best for your current situation. A buy-to-let mortgage is typically good for a property that an owner wants to rent out. Before considering the buy-to-let mortgage, property owners must consider if they can afford to do so and think about extra fees, such as landlord fees. Most importantly, when the owner reaches the end of their interest-only mortgage, they will still need to pay off the original price of the house. To sum, mortgages can be confusing, but it is important to plan and educate before applying for one to make the process as smooth as possible.
- There are many different mortgages available for those looking to buy a house.
- Buy-to-let mortgages are usually interest based, so the payment only covers the interest of the loan.
- Relying on rent can be risky since there could be problems with payment or vacant months in the year.
“With a residential mortgage, the difference between the loan-to-value and the asking price makes up the deposit that is paid, and this can be as little as five per cent.”