If you are planning to buy a property to rent out then you will need a buy to let mortgage. You cannot take out a standard residential loan.
As many existing landlords already know, this market has shrunk considerably over the last few years. However, there are still a lot of mortgages available.
It pays to shop around for a mortgage. Speak to a mortgage broker to find out the best deals for your circumstances.
A buy to let mortgage will have a higher interest rate than a standard home loan. You will also have to put down a larger deposit. This is typically a minimum of 25% up to around 40% for the best deals.
Plan Your Finances
Mortgage companies often look at affordability when making their decisions about whether or not to grant a mortgage. They will typically examine your income, as well as look at your existing loans and outgoing payments. Ifyou can reduce expensesand remove debts then you may be better placed to get a mortgage in the first place as well as to subsequently meet your mortgage payments. You will need to plan carefully in order to do this of course.
Also consider extending the period of your mortgage or looking into joint mortgages as a way of getting onto the property ladder by buying with other people. Check out what products are available to you that meet your requirements and your budget.
There is plenty that you can do to put yourself in a better position when looking for a mortgage, provided you simply plan and prepare.