What is a Buy to Let mortgage?
A Buy to Let mortgage is designed for borrowers who would like to rent out a new or existing property to a third party. They can be used to purchase or remortgage a Buy to Let property, or for additional borrowing.
Trends in the Buy to Let mortgage market
The Buy to Let mortgage market has undergone continuous change in recent years. There have been a lot of regulatory changes as result of the MMR (Mortgage Market Review) in 2014 and more recently changes to Stamp Duty and tax rules for Buy to Let investors. Despite the added complexity, investing in a Buy to Let property or portfolio of properties can still prove to be an excellent long term investment.
What you need to consider before purchasing a Buy to Let property
Deposit and rental income
The deposit required for the purchase of a Buy to Let property is often higher than that required for a residential mortgage, as a result of stricter lender affordability criteria. This said, as a broker with unlimited access to the market, largemortgageloans.com has access to a range of competitive deals, from fixed rate and variable rate options, up to 85% LTV (Loan to Value).
The rental income you earn from the property relative to the monthly mortgage payments (the rental calculation) will also have an impact on the range of products available to you. Lenders assess these factors on a range of criteria, so finding the right lender could have a considerable impact on your property investments.
It is important to remember that you will still be responsible for maintaining the Buy to Let mortgage repayments if the property is vacant, so make sure provisions are in place, should this occur.
How can we help you?
It pays to seek professional advice to help you navigate the ever-increasing complexity of the Buy to Let mortgage market. Speaking with one of our highly experienced specialist independent brokers could help you make more out of your investment.
There are a range of options that it may be worthwhile considering to help you secure the borrowing you want. You may be able to release equity from an existing property. Alternatively, a cross charge against another property may be possible in some instances as an additional form of security.
Seeking advice will also help you to find the most suitable repayment plan for you; whether you choose to repay the interest with an interest-only mortgage or make full repayments with a capital repayment mortgage.
If you are arranging your first Buy to Let mortgage or you are an experienced landlord, we may be able to help you arrange a mortgage tailored specifically to your needs, via our extensive network of banks and private lenders.
Your home or property may be repossessed if you do not keep up repayments on your mortgage.
The Financial Conduct Authority does not regulate some aspects of Buy to Let mortgages.
Some of this month's top interest rates are listed above; the actual rate will depend on your circumstances. Please note that this information does not contain all the details you need to choose a mortgage, ask one of our advisers for a personalised key facts illustration on 020 7519 4900. The rate displayed may become out of date at short notice.
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YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT
Changes in the exchange rate may increase the sterling equivalent of your debt
Largemortgageloans.com is a trading name of Largemortgageloans.com Ltd, 12 Pepper Street, London, E14 9RP which is authorised and regulated by the Financial Conduct Authority. We are entered on the Financial Services Register No 302228 which can be viewed here: www.fca.org.uk/register/. The Financial Conduct Authority does not regulate some aspects of buy to let mortgages, overseas mortgages and tax advice. Help and advice in regards to mortgages is available at www.moneyadviceservice.org.uk
Largemortgageloans.com Limited is registered with the Guernsey Financial Services Commission as a Non-Regulated Financial Services Business.
A typical fee of 1.17% of the mortgage amount is payable. Of this, 20% is payable on application and the balance of 80% on completion. For example on a mortgage application of £300,000 the fee would be £3,510 in total. Of this, £702 (20%) would be payable on application and the balance of £2,808 (80%) on completion. The total fee is non refundable. We may also be paid commission from the lender. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. Calls may be recorded for training and monitoring.
You may have to pay an early repayment charge to your existing lender if you remortgage.
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