Buy to let mortgages have come of age. Many home owners have direct experience of profiting from property, a buy to let mortgage enables you to benefit from rising property values and have your mortgage paid at the same time. Buying to let is no longer the domain of rich landlords, the prospect of buying and letting a property is now within the reach of many people

With interest rates at historically low levels, and stock markets uncertain, investing some money into property can make sense. Like any investment a property that you buy to let has its risks and rewards. If you take advice and plan your buy to let carefully the risks can be minimised.

Buy to let mortgages enable the investor to benefit from capital gearing. You invest a relatively small fraction of the value of a property, but you benefit from the capital growth of the full property value.

For example:

Property value £100,000

Deposit £20,000

If property rises in value by 5% p.a.

Value after 1 yr. £105,000

Gross profit £5,000

which represents a return of 25% on your investment!

This example assumes that your mortgage costs and expenses are covered by rent received. The costs of buying and selling are omitted.