A buy to let mortgage is a loan for an individual or company to purchase a property for the explicit purpose of renting it out. As a minimum costs, such as mortgage interest, repairs etc. should be covered by rental income, with the main objective being capital appreciation of the asset. Buy to let schemes are often used by individuals as an alternative to a pension scheme due to the fact that the annuities purchased by pension funds cannot be passed on as an inheritance to the next generation. Buy to let mortgages are normally made available for up to 75% of the property value, with mortgage interest rates being slightly higher than those for owner occupied properties.
Prior to committing to purchase a property it is essential to determine whether the necessary finance is available, either from personal savings, or from a mortgage lender. NFS has extensive contacts with lenders including competitive deals only available through introducers.