Buy to Let mortgage considerations
A buy to let purchase is a long term investment which you hope will generate rental income along the way and a profit when you sell the property.
But bear in mind that if you need access to some cash, a property can take time to sell or re-mortgage. If house prices fall, you might not be able to sell for as much as you had hoped. You would have to make up the difference if the property sold for less than you owe – a risk that increases, the higher the percentage you borrow. If you sell for a profit, you may have to pay capital gains tax. Don’t forget that with a variable rate mortgage, your costs will rise if interest rates go up. This would eat into, or even wipe out, your income and profit.
The Financial Conduct Authority does not regulate most forms of buy to let mortgage.