What is a Buy to Let Mortgage

This term describes where a property is purchased for the purpose of letting it out to tenants, which will generate an income for the purchaser. A number of lenders will consider granting a mortgage for such a purchase.  This mortgage might be a second mortgage and it may be secured on the property being purchased in order to let.

Some risks of buy to let mortgages and letting your property.

There are positives and negatives to every mortgage, so here's a quick list of things to be cautious about

 

• Cost Rising Unexpectedly
• Property is empty longer than expected
• House prices do not rise as much as you had anticipated
• Poor location, property has no demand
• Poor condition, tenants may not want to live there and you may have to spend thousands to tempt them to let the property.
• Bad Tenants, Tenants may damage your property , fail to pay the rent, or upset neighbours.