If you already have a home that you are happy with, but are looking for a good investment, why not consider snapping up a bargain to use as a buy to let?
You'll have a lot to consider, not least the implications of becoming a landlord, but if you can provide a 20% deposit you'll at least find a competitive range of buy to let mortgage packages.
We take a look at how to find the best 80% LTV buy to let mortgage deals and why now is a good time to become a landlord.
Are buy to let mortgages 80% LTV are a good idea?
Although it seems there has never been a better time to climb onto the property ladder, banks are still cautious in their lending and there is no longer the free and easy attitude which has been seen in the past.
The near collapse of the sector stung many banks and as such, many tightened up their criteria on how much they would lend and to whom. This means that a larger number of individuals are opting to rent rather than buy and in some parts of the country, the number of landlord-owned properties isn't sufficient to meet the demands of tenants.
With this shortfall in mind and an affordable mortgage, the right property could give you an excellent investment opportunity.
What to look for
80% deposit buy to let mortgages are not the same as borrowing to buy your own home and there's not the same range of deals for prospective landlords.
However that doesn't mean finding competitive buy to let 80% mortgages is impossible.
An 80% buy to let mortgages comparison will give you the range and scope of deals currently on the table. It's therefore important to understand what your priorities are before signing on the dotted line for a buy to let mortgage with 20% deposit.
Do you need a fixed price for as long as possible? Or to keep repayments low? Or perhaps you want to cut down initial set up fees as much as possible? If you compare mortgages it's easy to get distracted by some of the offers so make a list of what's important and focus on those first.
If you need to minimise your upfront costs when you are trying to find the best buy to let mortgage, look for a provider who is offering to waive completion fees plus a free valuation. In return the interest rate may be higher, typically around 1% more.
Variable or discount deals may offer the lowest rates at present, particularly while the Bank of England base rate remains low, but you need to think about the entire term of your house loan.
If you need surety from your repayments you might want to consider a fixed rate deal. Fixing your buy to let mortgage rates 80% LTV tends to mean slightly higher rates than on variable deals, but competitive fixed buy to let mortgages 20% deposit will let you budget with certainty.
Once the BoE base rate starts to change and pushes up mortgage rates, fixing will also protect you against any dramatic hikes and make it easier to set the right level of rent.
Where to find them
If you compare 80% LTV buy to let mortgages online, you can find all the top offers available on the market in minutes. However not all will be viewable directly through the lender.
Some buy to let mortgage deals on our mortgage comparison can't be applied for direct (through their bank or building society); instead you'll need to apply via the listed broker with that particular mortgage in mind.
Other landlord mortgages 80% deals are available to existing borrowers only and may not be advertised on the lender's website. Whatever B2L mortgage you choose, check your circumstances against its terms to make sure you'd be eligible.