Buy to let mortgage - everything you need to know to invest in property.

What is a buy to let mortgage?

A buy to let mortgage is a way to enable you to invest in property. The criteria for lending is worked out differently to a standard mortgage however there is no limit on the number of properties you may buy to let.

How much can I borrow?

A buy to let mortgage normally has a minimum loan value of £25,001 rising to a maximum value of £1 miillion. A 20% deposit is usually required for a buy to let mortgage.

How does buy to let work?

Firstly you need to work out the deposit that you will need to fund the purchase. You will normally be required to find 20% of the purchase price as a deposit so this will determine your price range.

Research your property

Talk to your local estate agents about the types of property that they have available and what the typical rent rates are for the local area. This should give you an idea of what rental income you can expect to make from the property.

Make an offer

Once you have found the property that suits you - make an offer! Once the offer has been accepted then you should commission a valuation.

Instruct your solicitor

Instruct your solicitor to carry out the purchase and provide them with details of the property, the estate agent, seller and your lender

Pay the deposit

Pay the deposit, sign and return the contract and the solicitors will exchange contracts. You are now legally committed to the sale

There is now a ton of stuff for you to take care of. Maybe the property needs redecorating in which case you need to get the decorators in quickly. Make sure you have budgeted for any decorating and remedial work that needs doing on the property beforehand.

Draw up a specific inventory list of all of the items that are being let with the property and provide a contract for your tenants to sign.

This Property Investment Workshop can help show you how to buy investment property with no money down.