BUY TO LET INVESTMENT MORTGAGES
A bit More on Buy to Let
Buy to let properties can be very lucrative, but like any investment, you should always investigate what’s involved and be aware of everything that renting a property entails. In recent times the buy to let industry has been through some major changes such as stamp duty increases and the abolition of the tax relief which has influenced how BTL mortgages are secured. That said, the market continues to be buoyant, much of which is attributed to the rising importance of the private rented sector. For years, the number of households living in the private rented sector averaged between 9% and 12%, however over the last decade, this share risen to over 20%.
Whether you already own your own home or not, securing a buy to let mortgage will come with its own set of rules, charges and interest rates. The good news is that if you find the right property and the right mortgage package, it is likely to be a good way to bring in a regular income.
What Tailored Money Can Do. Our experience has allowed us to help many new and existing landlords find the best buy to let mortgages available. We understand that you will be looking to maximise the return on your investment and that your circumstances will be unique to you. By having access to the whole market and experts who specifically look after this sector, we will work closely with you to secure the right deal. For a buy to let to be a good investment, it’s even more important to do the sums, and that’s what we are here to help with.
Changes to the market have made it a lot more complex than simply ensuring rental income covers the mortgage payments. We get a wide range of enquiries and diverse customer portfolios looking for buy to lets across the UK, so when we talk to you about your requirements we are well equipped to deal with many different financial circumstances.
Understanding the Market. There is not one fixed rule on borrowing for buy to let mortgages, but generally they will require a significant deposit. Around 20% is fairly standard, although like other mortgages, the more you offer the better the interest rate you are likely to get.
Together with the lenders, we will analyse the potential income from the property and help them decide how much to lend you. To get an idea of what your rental income would be, simply talk to letting agents in the local area and do your own online research to find out how much similar properties rent for. Keep this amount to hand as we will use this to help figure out how much you can borrow and help work out your likely options.
As a quick work-out and to ensure your investment is financially viable, we would work on making a rental income of at least 125% of your mortgage payments. In addition to this, you need to factor in any property maintenance costs, landlord insurance, stamp duty and any letting fees should you choose to use a management company.
If you want to start the process for securing your buy to let mortgage and would like some expert advice, fill in this simple form and one of our team will be in touch the same day.
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