Buy to let mortgage advice

What is a buy to let mortgage?

This type of mortgage is taken out if the property the mortgage is secured on is being let or rented. As a rule, you will need a deposit of 25% to secure a buy to let mortgage, and the amount you can borrow is normally calculated based on a combination of your income and the rental income of the property. Interest rates and arrangement fees tend to be higher on buy to let mortgages.

If you are thinking of taking out a buy to let mortgage, whether for the first time or an experienced landlord, then it is important to make sure it is the right thing for you. Get in touch with The Surrey Mortgage Broker for buy to let mortgage advice today.

Why choose a buy to let mortgage?

Buy to let mortgages are suitable if:

• You’re buying a property which you wish to let for additional income
• You’re purchasing a holiday home which you wish to rent out
• You’ve been unable to sell your property, so you need to rent it out

If you’re looking to invest your money, property has great potential. Being able to renovate and redecorate means there is the opportunity to gain value on the property and therefore make money on your investment; which is somewhat easier to achieve than with other investment strategies.

Alongside this, there is also a high demand for rental properties. With many people struggling to get onto the property ladder themselves, more and more people are looking to rent. This means if you invest in the right property, you shouldn’t be without a tenant and as a result, income.

What do you need to consider when choosing a buy to let mortgage?

It’s important not to dive straight into a buy to let mortgage without considering the wider picture. Make sure you’re aware of all of the fees and terms associated with a buy to let mortgage before you make a decision. Some things you will need to consider include:

• Buy to let mortgages come with some risk
• Your property value and interest rates may rise or fall
• You’ll need to raise a large deposit – usually about 25%, but it can be as high as 40%
• There are often higher and extra costs involved with buy to let mortgages than there are with normal mortgages. For example, arrangement fees are often more expensive, and you’ll face an extra 3% stamp duty

How we can help

If you are looking for a buy to let mortgage broker, get in touch. Since 2003, we’ve been offering unbiased, reliable buy to let mortgage advice in Surrey and surrounding areas. If you’re unsure where to start or have struggled to secure a buy to let mortgage deal, get in touch for a free initial consultation where we’d be happy to assess your situation.

Contact Richard Bousfield on 01252 759 233.

What our customers think:

“Contacted Richard as a result of a large broker/firm proving ineffective and advised me they cannot find a buy to let product for my property. Thankfully Richard searched for a potential lender and even phoned surveyors to ensure I wouldn’t be let down again. I’m very happy that this is resolved and sorted for another five years.” – David Rogers, Hook

Please be aware that from 6 April 2016 higher rates of Stamp Duty Land Tax will be applied to the purchase of additional residential and non-residential properties. For further information and advice or to arrange a consultation, please contact us.

MOST FORMS OF BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FCA.

A MORTGAGE IS A LOAN SECURED AGAINST YOUR HOME. YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

FAQs

• How much can I borrow?

  The amount you can borrow is linked to the rental income you can expect to achieve. Typically, a lender would need your rental income to be 25%-30% higher than the mortgage payment.

• Can I get a buy to let mortgage as a first-time buyer?

  You can, but it may be trickier to find a lender who will give you a buy to let mortgage. Get in touch with us, and we’ll be happy to explore your options.

• How much deposit will I need?

  Typically, 25%, but you can expect a lender to request a deposit of anywhere between 20%-40%.