Calculate Needs Before Getting Buy To Let Mortgage Quote

2007-11-09 05:11:17

( Financial )



If you are making an investment in a buy to let property, you can conserve your cash by putting only a small deposit and providing for the rest of the financing required with a buy to let mortgage. You will have to shop around for the best buy to let mortgage quote, especially in an economic environment where interest rates appear to be rising.

You can estimate the maximum purchase price of property to buy if you have a flexible buy to let mortgage calculator. The amount of deposit you can afford, that is, the initial cash investment you are willing to make, is the critical amount to determine. Once you have determined that amount, you should subtract from it the professional fees and other costs that are associated with the purchase.

You then divide the remaining amount by the deposit required by the buy to let mortgage lender in percentage terms. Usually, lenders require at least a ten percent deposit. The quotient will be equivalent to the maximum purchase price of the property. If you want a more expensive property, you will have to increase your deposit.

Now you can go around looking for properties that fit your maximum price criterion. Bear in mind as you search for property that mortgage lenders have exclusions on certain properties. They normally do not underwrite mortgages for studio flats, flats above commercial properties, properties formerly owned by the local council, and properties that are not of standard construction.

When you have found a property, you can proceed to shop around for affordable buy to let mortgage quotes. You can ask high street banks, but your better option may be mortgage brokers who know a multitude of lenders. Brokers will be in a better position to find for you the most favorable buy to let mortgage quotes that match your financial capabilities.


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