There are generally two types of buy to let interest-only mortgages and repayment mortgages. Borrowers can repay the debt interest each month with interest-only mortgages, but the borrowed capital remains. But with a repayment mortgage, the borrowers pay interest and a portion of the capital each month. At the end of the period, the borrowers have full ownership of the property and do not need to repay the capital. But getting a mortgage for a buy to let, borrowers must meet the lenders’ criteria. Some of the most important indicators are:
- To assess their credit risk, lenders consider borrowers’ monthly salaries, costs, and deposits.
- Lenders also consider the potential rental of the purchased property.
- Buy to let mortgages are more stringent than normal mortgages.
- If borrowers prove that they already own their property, lenders will consider their applications.
SWG Mortgages advisors specialise in providing advisory services to improve credit scores and assess borrowers’ needs and financial conditions especially for large mortgage loans. Borrowers can also increase their chances of getting a mortgage for buy to let by using the knowledge and experience of SWG Mortgages advisors.