You may be considering buying a property as a long term investment. This is often one of the most profitable long term investments available. There is the regular income of the rent and you acquire a large asset which you can usually improve and therefore increase the value of your investment.

Rental Income can be used for Payments

With a buy to let mortgage you can use the income received from rent to pay the mortgage repayments. Once you have paid the mortgage in full you are left with full ownership of a property. You can then continue to receive rental income or you could sell up and receive a large cash lump sum.

This can be an ideal alternative to a pension as it can be used as a retirement income, either by continuing to let out the property or by releasing the properties equity in the form of an equity release plan.

Becoming a private landlord is not a short cut to making money, but can enhance your options and add value to your investment strategy.

The difference between a regular mortgage and a buy to let mortgage

Always remember lending money is based on risk assessment. A lender will consider all the risks involved in lending you money. The advantage of a buy to let mortgage is that the mortgage lender will consider your rental income when calculating your ability to repay the loan. So you may be able to borrow more money based on the fact that your income will increase after you have secured the mortgage. So your potential rental income will be a factor in the lenders risk assessment.

Buying to let is not an easy road to success, it can take a lot of planning. Taking professional mortgage advice will ensure you get the best mortgage deal for your circumstances.

Finding the best Buy to Let Mortgage

Please be Advised: Certain Mortgages, such as Buy-to-Let mortgages, are not regulated and authorised by the FSA.