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In the last few years buy to let mortgages have gained popularity and interest rate have almost levelled with residential products.

Buy to let mortgages are especially designed for rental properties. People have long seen investment into the bricks and mortar as an alternative to volatile stock markets.

When you are considering purchasing your first buy to let property, you should not expect to have a quick return as buy to let is considered to be a long term investment.

Quite many landlords invest into buy to let for the benefit of a rental income and therefore they are trying to minimise their outgoings by getting a buy to let mortgage on an interest only basis. However while it is a suitable option for some, it may not be an appropriate for the others. If you decide to take an interest only mortgage and will make any repayment arrangements, you may have to sell the property eventually to pay off the original loan. The only mortgage which guarantees that your mortgage will be repaid at the end of the term of the mortgage is a repayment.

For a buy to let mortgage you should to be prepared to put down as much as 25% of your own money, buy to let mortgage deals which accept just 15% deposit are hard to find.

Buy to let lenders apply almost identical rules as to residential when considering your buy to let mortgages. You must satisfy their minimum income requirements and have a good credit history.
Your anticipated rental income is taken into consideration and must cover your mortgage payments by about 125%.You may find that if you property valuation is fine, but you are not generating enough rental income, lenders may reduce the amount of the loan available to you.

Number of buy to let mortgages available on the market, can be confusing for amateur landlords. It is difficult for an inexperienced borrower to make a choice as they often can’t pinpoint their requirements. If you are one of them, don’t gamble, ask for an advice. Your mistakes can be costly and not easy to rectify. You can choose to apply for a fixed or a tracker mortgage and bear in mind that you can get flexible buy to let mortgage if necessary.

Remember to have some spare cash to cover void period and necessary repayment. Unfortunately, sometimes landlords have to face tenants which fail to pay their rent and it is an expensive business to have them evicted.

As required by most lenders it is advisable to rent your property on a Shorthold Tenancy Agreement and have it adequately insured.