- Personal Finance
Save Money With A Buy to Let Remortgage
A Buy to Let Remortgage
The weak economy of the last couple of years has been a real problem for a number of people, but there are advantages to it. There a plenty of opportunities out there if you know how to take advantage of them. This is especially true when it comes to investing in real estate. The combination of low property prices and low interest rates makes now an ideal time to buy. Even if you already own a property you can use a buy to let remortgage to reduce the amount you are paying in interest.
A lot of people have found themselves losing their jobs in recent years and this has put them in a position in which they can’t pay their mortgage. This has resulted in a lot more properties on the market and a lot fewer buyers, forcing prices down. This is obviously good for a real estate investor but there is another benefit as well. All these people who have lost their homes need still need somewhere to live. This has resulted in a huge increase in the demand for rental properties. There has never been a better time to buy a rental property and a buy to let mortgage makes that very possible.
A buy to let mortgage will allow you to purchase a rental property because you can use the income that you will receive from the property as proof of your ability to make your payments. The one major downside of a buy to let mortgage is that you will need to make a large down payment. This can be a real issue if you want to purchase more than one property. Fortunately there is a way around this problem and that is a buy to let remortgage.
A remortgage will allow you to use the equity you have in your home by taking out a new mortgage. A buy to let remortgage is one that works the same way as a buy to let mortgage, it allows you to use your rental income as proof that you can make your payments. This means that you can use the equity in one rental property to make the down payment on another, allowing you to increase the number of properties in your portfolio.
There are other benefits to a buy to let remortgage, one of the biggest is the ability to reduce the amount of interest you will need to pay. With interest rates at all time lows now is the perfect time to remortgage your rental property in order to save your money.