Surrounded by beautiful countryside is our brand new development Ryemoor Gardens, Helmsley. With 2, 3 & 4 bedroom homes available, this could be your perfect opportunity to take out a buy to let mortgage and own your very own rental property in the countryside.
What is Buy to Let?
A Buy-to-let mortgage is for property owners who want to buy another property to rent out. A buy-to-let mortgage can be an additional income stream alongside your current earnings. Although this is another form of mortgage, there are some key differences between a regular mortgage and a buy-to-let mortgage.
Some key points you’ll need to know if you want a buy-to-let mortgage:
- A buy-to-let mortgage is for those who want to invest in a house/flat for an additional income stream
- The amount you can borrow depends on how much rent the property will generate. Unlike a residential mortgage which is typically based on how much you earn, lenders will want to see the expected rental income.
- Lenders typically require you to have a minimum salary of £25,000. A buy-to-let mortgage doesn’t depend on how much you earn, but if you earn less than £25,000, you may find it hard to get a buy-to-let mortgage in the first place.
- Interest rates are typically higher than standard mortgages. Lenders see a buy-to-let mortgage as a higher risk, so interest rates tend to be a lot higher than on a residential mortgage.
- The deposit needed tends to be higher than a standard mortgage. Dependent on your mortgage lender, minimum deposits can range from 20% to 40% of the total property value.
There are different types of buy-to-let mortgages such as fixed rate, tracker rate and standard variable rate. It’s important to speak to a mortgage broker before you take out a buy-to-let mortgage. They will know the best deals in the market and help you get the one that suits you best.
Buy to let VS residential mortgage
There are some key diffrerences between a buy-to-let mortgage and a residential mortgage which you should be aware of if you're looking to take out a buy-to-let.
Benefits of a Buy to let mortgage
Taking out a buy-to-let mortgage brings a range of benefits.
Long term investment
– The value of property can rise and fall, however historically it’s proven that over time, property has served investors well and increased in value over the long term.
– If you have tenants in your property paying the rent, having an additional property will serve as an extra income on top of your current salary/wages. It’s important to factor ongoing costs as a landlord, such as repairs and maintenance, but overall it should generate additional income.
– The demand for rental homes is high. With stricter mortgage criteria, people are looking to rent as an alternative meaning your chances of finding tenants is higher.
Buy to let at Ryemoor Gardens, Helmsley
Ryemoor Gardens is a collection of 2, 3 & 4 bedroom homes located within the picturesque town of Helmsley.
Helmsley is the only market town in the North York Moors National Park and is the perfect base for enjoying the wider area as well as exploring the local town centre. Known for its picturesque location, Helmsley was the winner of Britain’s Best Market Town in the Great British High Street Awards in 2015.
If you'd like to find out more about buying at Ryemoor Gardens, send us a message here
. Or book an appointment to view our show home and chat to our sales consultant.
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