Self Certified Buy To Let Mortgages
Alternative Investments To Self Certified Buy To Let Mortgages
Prime buy to let
There is always the option for a prime buy to let mortgage. Lenders are saying no to self certified buy to let mortgages, but there are still plenty of regular, risk-adverse deals that are primarily based on rental income. This is great for someone who cannot prove their income, as they will certainly be able to prove the rental possibilities of the property they want to invest in. Also, just because you think you could only be eligible for self certified buy to let mortgages doesn't mean it is the case - plenty of people who think they are self cert may be prime. Just ask a mortgage adviser which one you are.
Invest in your residential property
Right now is a great time to invest in your own property. Low rates means overpaying is the most sensible form of investment, and easier than self certified buy to let mortgages. Talk to your adviser about planning how much your should overpay into your mortgage - while it's impossible for you to take out self certified buy to let mortgages, you can work on paying off your mortgage early, improving your credit score and making you a much better proposition when mortgage market picks up.
Savings
You can always put your money into a savings account or a cash ISA. This is open to anybody unlike self certified buy to let mortgages, and although rates are very low right now, locking in for a few years may give you some reasonable returns. These are not the times of get-rich-quick property investments that made self certified buy to let mortgages so appealing; this is time for careful, prudent long-term investment.
Offset your money
Take out an offset mortgage instead of opting for self certified buy to let mortgages and invest your money alongside your mortgage. This will give you a host of options - it allows you to invest your money without losing control of the sum, as you can take it out whenever you like. It also gives you an instant benefit from the outset as your mortgage rate decreases. And it's a tax-free saving because the invested amount makes no interest, so accrues no tax. It just reduces your repayments, saving you tax-free money, month after month. It's a great alternative to self certified buy to let mortgages because it isn't affected by falling rates, it's flexible and you are in control of your investment.
In general buy to let mortgages are not regulated by the Financial Services Authority.
