What is a buy-to-let mortgage?

Are you looking for information on buy-to-let mortgages? This type of mortgage is sold specifically to are looking to buy property with the intent of renting it out again. This means that the mortgage is a way to get money for investing in property. While the buy-to-let mortgage are more expensive than typical mortgages, they are a preferred finance plan for these type of investments.
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Investing with buy-to-let mortgages

An interesting investment opportunity is the purchase of a house to rent out immediately. A rental house provides return in two ways: direct return from the monthly rent you get from letting out the house and indirect return from through a potential value increase in the market value of the house. Due the low interest rates, the increasing house prices and an increased responsibility for one’s own pension, the buy-to-let mortgage is an alternative way to build wealth. When you are interested in a buy-to-let mortgage we will assess together with you your opportunities based on your financial situation and the requirements for the buy-to-let mortgage.

What is the difference between buy-to-let mortgages and residential mortgages?

Generally buy-to-let mortgages are interest-only based mortgages. This means that you pay interest on a monthly basis, but won't repay your capital debt. As long as you don't make extra payments, this number remains unchanged. At the end of your term, the entire debt will need to be paid in full.

Buy-to-let mortgages with capital repayment also exist, but the interest-only based mortgage is typically preferred, as it reduced monthly costs for the landlord. The income the landlord makes each month with renting out the property can be used to pay off the interest.

Requirements for the buy-to-let mortgage

  • No minimum income requirement
  • Residential property
  • Financing up to 80% loan to value of the market value in rented-out state
  • Financing up to 80% of the purchase price if lower than the market value
  • Until 60% interest only mortgage, 60% to 80% linear mortgage
  • Mortgage cost depends on the yearly rental value of the apartment

Independent advice on buy-to-let mortgage rates

As financial consultants Finsens provides objective and independent advice. If you are looking for a buy-to-let mortgage, we can analyse your financial situation and recommend you about the possibilities.

  • Experience

    Our financial advisors have over 25 years of experience.

  • Independent

    We are focused on the client’s personal and financial situation.

  • Market knowledge

    We have perfect and up-to-date knowledge of the market.

  • Flexible

    It is possible to meet before and after office hours.

  • Amsterdam based

    Our office is based in Amsterdam and easily accessible.

  • For expats

    We provide financial advice for expats looking for a mortgage in Amsterdam.

Want more information on which buy-to-let mortgages to get?

Please contact us if you would like to receive more information regarding a buy-to-let mortgage and the best possible interest rates. You can reach us by calling +31 20 262 43 50 or by filling in the contact form on our website.

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