The basic function of a letting agent is to help you find the right tenant for your home. However, modern letting agents offer a wide of range of services even if you have not yet purchased the property that you intend to let out to a tenant. Working with Abbotts letting agents in Kings Lynn will help you learn more about the benefits and advantages of going in for a buy to let mortgage.
What is a buy to let mortgage? How is it different from a standard mortgage? A buy to let mortgage is a loan designed specifically for homes that are going to be let out to tenants. A self-occupied property will not earn any income. You may save on the rent that you used to pay on rented homes but you will not be in a position to enjoy a fixed monthly income when you occupy a home purchased with borrowed money. On the other hand, a home let out to tenants will help you earn a steady income in the form of monthly rent payments.
Lenders focus on the borrower’s income when lending money for purchase of a self-occupied property. When lending money for a property that will be immediacy let out, lenders consider their rental income when determining the borrower’s repayment capacity. A home that earns the monthly loan installment through rental income is a very safe bet for lenders.
Of course, this is a very attractive proposition for the home owner as well. The loan on your property will be repaid without any impact on your monthly budget. Once the loan is fully repaid, the monthly rent will become an additional income. Simply put, you will end up owning a valuable asset without spending anything out of your pocket. Of course, you cannot afford to become complacent when comparing buy to let mortgages. Even the smallest reduction in the interest rate can help you speed up the repayment process. This is where relying on professional letting agents can make a huge difference.
There are numerous attractive mortgage loans available in the market depending on your requirements and preferences. Working with professionals will help you learn more about such deals. Combine professional assistance with online research to improve your chances of finalizing the right mortgage loan for your property.