If you intend to buy a property or office space for the purpose of letting it out to tenants and making significant income, you likely know a little about buy to let mortgages and how they work. However, you may be apprehensive about applying for this type of loan until your credit score is higher. There are a few ways to get a buy to let mortgage even if you don’t have the best credit, provided you keep a few things in mind.
Firstly, if you have an adequate deposit for the mortgage loan, your chances of getting approved are much higher. Typically, you’ll need to present 15 per cent of the total amount of the buy to let mortgage loan in order to be approved. If you are buying the property to both invest in and let to tenants, your credit score will be looked at more closely. In these cases, you’ll probably have to have lucrative collateral in order for the lender to approve your buy to let mortgage. For more information, see www.qropshelpcentre.co.uk.
You’ll also have to think about the profit you intend to make by obtaining a buy to let mortgage for a property. The amount of money you expect to bring in should be up to 125 per cent of your mortgage repayments. This is to ensure that you’ll always be able to make your mortgage payments on time.
As with any loan, it’s best to make sure that your credit is in the best shape possible before you apply for approval. However, it’s understandable that completely repairing your credit can take a considerable amount of time. Observing market trends and considering the assets you have that can increase the chances of your mortgage loan approval, along with choosing a lender who doesn’t have strict stipulations, could make you a property owner sooner than you think.