buy to let
Are you looking to start your first investment property? Or perhaps you are looking to expand your existing portfolio? Either way, when you are looking to buy a property as an investment you will not be able to find your purchase with a normal mortgage. In these circumstances, you will need a specialist buy-to-let mortgage.
There are lots of deals out there that will cater to you regardless of your requirements, however navigating the rules surrounding buy-to-let mortgages can be tricky. The good news is that you can trust in our advisers to help you through the entire process. We bring years of experience and combine that with our commitment to you to ensure you secure the best possible deal.
Buying a property to rent out is an option for those looking for an additional source of income, a nest egg for future retirement, or as a business opportunity as a landlord. Most lenders won’t finance a rental property purchase with a standard residential mortgage; you will need a buy-to-let mortgage for this instead.
Buy-to-let mortgages differ from normal residential mortgages in a number of ways. Most lenders view buy-to-let borrowers as higher risk than home owners who wish to occupy their home. As such, buy-to-let mortgages tend to cost more over their term. These additional costs come in the form of higher interest rates, larger deposit requirements and higher arrangement fees.
Most buy-to-let mortgages are interest-only mortgages, meaning you’ll only pay the interest each month rather than paying down the overall capital amount. You will only repay the debt in full at the end of your term, normally through selling the property. Standard mortgages are based on your income, whereas the amount you can borrow for a buy-to-let mortgage is also based on the property’s projected rental yield.
There are many reasons for wanting to invest in
property. Some will do it as a way of increasing their
monthly income, whereas others will use it for a long
term investment plan. Regardless of your motivations,
investing in property has always been a stable and
safe long-term investment.
The simple principle of a buy-to-let property is one of
the key attractions for investors. Once you have
purchased your property, rent it out to a tenant and
begin making a profit through monthly rent prices that cover the cost of the mortgage and expenses, and pocket any additional mark-up. There is also an ever growing increase in demand for rental properties because people may not necessarily have the capital for a deposit on their own property and decide to rent instead.
The best gains are to be made over the long-term. Due to a continuous fluctuation in house prices, people have become reluctant to buy a house and re-sell it for a profit. Instead, buy-to-let properties play the long game by seeing a regular and profitable monthly return from rental fees. Combined with the overall up trend of house prices and long term market stability, the property may increase in value over the term and become even more worthwhile if you choose to sell the property.
can I get a buy-to-let mortgage?
We’ve helped hundreds of people like you secure their perfect buy-to-let mortgage deal which has helped them profit from buying and renting out a property. Whether you are a novice landlord or a property investment professional looking to increase your portfolio, there will be several mortgage options available to you.
With buy-to-let mortgages, the size of your deposit is really important and most lenders will look for a minimum of around 20% deposit. Also, most lenders will require that you already have your own home, as well as meeting other standard requirements such as affordability assessments, credit checks and minimum salary requirements.
There is also lots to consider before diving straight into a buy-to-let deal. For example, landlords can often face problems with collecting rent and unless they have a long-term tenant in place, the property may be unoccupied for varying periods of time. This is one of the downsides to owning a rental property; you should always consider if the mortgage payments are still affordable without rental income.
what is a buy-to-let mortgage?
why should I invest in property?
Searching for your next investment?
If you’ve struggled to find the right buy-to-let mortgage for your needs, you’re in the right place.
No matter if you’re a novice landlord, or have an established rental property portfolio, we are on hand to help secure you the perfect deal.
Although we do not charge for the consultation, we charge a fee, which is payable as follows:- £500 on completion of the mortgage. We will receive commission from the lender in addition to the fees you pay.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP MORTGAGE REPAYMENTS.
NOT ALL BUY TO LET MORTGAGES ARE REGULATED BY THE FINANCIAL CONDUCT AUTHORITY