 Buying a property so you can rent it out can be beneficial in two ways. It provides a steady income and in the long term it has potential for capital growth.
There are 3 main differences of buy to let mortgages:
Rent Potential - the decision as to whether or not a mortgage will be offered is usually based on the rent you will earn as well as your income.
Interest Rate - buy to let mortgages do normally have a higher interest rate.
Larger Deposit quite often a 20% or 25% depost of the property's value is required.
Becoming a landlord can be complicated and risky. It can be time consuming, and there is no guarantee that property price will rise
|