What Is a Buy to Let Mortgage?

what is a buy to rent mortgage

Buy to let mortgages allow people to buy homes which they then rent out at a profit.

History

Buy to let ("let" is the common British English word for "rent") mortgages first appeared in the United Kingdom in the late 1990s. Over there, many banks saw an opportunity to offer these mortgages when secure tenure for tenants in rental homes was abolished. This tenure effectively prevented landlords from evicting problem tenants, which made being a landlord somewhat unattractive. Since then, these types of mortgages have made their way over here, with banks offering many different versions.

Considerations

Banks offering buy to let mortgages generally require higher down payments. These most often range from 15 to 25 percent. Generally, most banks will require new investors to put more down, at least on their initial purchase. However, veteran rental home

investors will usually be able to put less down. And investors with extremely strong credit may be able to still put little or no money down, though this is currently fairly rare.

Benefits

Features

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    http://homeguides.sfgate.com/buy-let-mortgage-8352.html what is a buy to rent mortgage
  • Source: homeguides.sfgate.com

    Category: Credit

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