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# Reap great profits with a buy to let mortgage

For anyone looking to invest in the property market, the options are galore. You can either invest into commercial properties or residential properties. Most people buy real properties like homes and buildings and then put them back into the market for sale at a price higher than the one they paid for buying it initially. Another kind of property investment that is known to reap great returns is that of buy to let investment.
Buy to let investment entails buying a particular property with the intention of letting it out. Often investors of such rental properties are known to earn great profits via rental incomes. But the question is how will you purchase this property? The answer is quite simple: by availing a buy to let mortgage.
A buy to let mortgage is a sort of secured loan that allows you to buy a particular property with the purpose of letting it out on rent. This mortgage is basically availed against the property that you are buying, thus giving your lender a legal claim on it. There are several factors that lenders look into before lending you this mortgage. Various factors like the stability of your job, your credit history, value of the property you are buying etc. will determine whether your mortgage gets approved or not. Most lenders also look into your income to ascertain whether you are going to completely depend on your rental income for your installments or you have a back up.
In all probability you will be able to finance 85% of the property's value via the mortgage, with you being expected to pay 15% of the value. The market is abounding with choices when it comes to buy to let mortgages. Since the competition in the mortgage business is so fierce, you will find a good number of lenders hankering after your business. This increases your chances of getting a low rate of interest for your buy to let mortgage.
A word of caution for all buy to let mortgage seekers. Before you take your business to a particular lender, you must ensure the following points:
. Is the lender or the lending institution FSA authorised? You can check with FSA's register on its website.
. Does your lender have access to a lot of different buy to let mortgage products?
. Are they able to arrange a buy to let mortgage for you within a span of 10 days?
Although, there is a system in place, which you can approach in case anything goes bust; yet it is not fool proof. Financial Services Compensation Scheme will not cover buy to let properties unless the borrower uses 40% of the property for residential purposes. So, remaining alert is always the best thing to do.

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