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Terms & conditions
Your initial mortgage consultation is obligation free. Depending on the size of your mortgage, there may be a fee for our service, which will all be discussed and agreed before you make a mortgage application. A typical fee is £399, all of which is only payable on completion, and will never be higher than £799. Unlike many brokers, we will not ask for anything up front, you only pay us when we’ve done the job your asking us to do. We call it a success fee. We will also retain the commission from the mortgage lender/service provider.
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In recent times, the buy to let industry has been going through some pretty major changes. It’s not just a case of rental income covering mortgage payments, as with main residential mortgages each lender has different criteria when it comes to assessing worthy borrowers, and in a very different way to main residential mortgages. We have been getting a wide range of enquiries on buy to lets in the UK and further afield, so to help we have a breakdown of useful information from our buy to let guide made from the most common questions. So, if you want to know more about read on, or if you want some buy to let advice right away, give us a call, fill in a , or now.
Now there is no hard and fast rule on credit scoring systems. The one thing that is certain is that all are evolving and changing day to day, with lenders manipulating their pass/fail rates depending on their appetite to lend. From lender to lender, this can be one of the biggest differences seen in mortgage criteria. Some lenders are very strict , others relatively relaxed, and others have no credit score at all. Read our article onhere
When it comes to buy to let mortgages, credit score can be the difference between getting that headline best buy to let rate, and having to compromise with a higher rate, which ultimately eats into your profit. Seek advice before making any applications.
What is a HMO? House In Multiple Occupancy. This is defined by the number of tenants in a property, and the type of contracts they have signed. Usually, a lender will view a buy to let as a HMO when there is more than one tenancy agreement, for instance a mortgage on a student house. See here for full definition. The majority of high street lenders will not offer standard residential buy to let mortgages on HMO properties, as regulation of these differs from standard policy. It may be that what you need is commercial finance, so you’ll be best to find an expert to talk through your case first, as making the wrong application can be costly.
If you are an experienced landlord with a portfolio of properties, you may be looking for a lender that’s happy to secure one loan over more than one property. This again is something that can be done if you know what you’re doing. Many high street lenders only allow you to take a mortgage out on one house, and then may also require equity/deposit in excess of 40%. A more flexible buy to let lender or commercial buy to let lender may be the answer, so it’s important to use a broker or finding service that offers you both, to make sure if there’s a solution out there you find it.
Many lenders have restrictions on total exposure to the risks of the housing market, and so limit any borrower to a small number of properties and mortgages. Some lenders only allow a maximum of 3 buy to let mortgages in the background, however some have no limit.
Making sure any borrowing is affordable is of high importance for any lender because they’ll want their money back plus profit, without having to repossess! Again, each lender is different. Some will have a rule that any borrower must have personal income of at least £25,000 for example, where others don’t ask for any proof of personal income, only that the new mortgage payments are covered by the rent.
You can get a buy to let mortgage on pretty much any type of property, but again each lender will have their restrictions. For instance if you’re buying a run down property to renovate and let out, if its currently inhabitable or has some structural damage, then certain lenders wont touch it. It may take a specialist type of mortgage to fit your situation, one that’s not so easy to find on the high street or from a comparison site.
The loan to value limit for buy to let mortgages has been slowly increasing over
the last couple of years since the credit crunch, but still we aren’t seeing the
same level of lending we used to. Certain lenders are currently offering lending
up to 80% of the value of the property as a first charge; however some more specialist
lenders are offering second charges and loans over and above this. If you’re looking
for borrowing of 85%-
Pretty much anyone over the age of 18 can get a buy to let mortgage. However certain
lenders place restrictions on maximum age. For the most part, they need to ensure
it’s affordable into retirement if there were no tenants in, but some lenders are
less worried by this and have no strict age limit. Other lenders may require you
to have an already pre-
or use the live chat below and we will have a look into it for you for free. We can provide a quote to give you a good idea of what options are available to you and which lenders will offer you a buy to let mortgage. Feel free you use our as well to compare the buy to let mortgages available to you.
In certain circumstances, it may be advisable to set up a limited company to own
your property portfolio. Buy to lets can be taken out by companies with various pro’s
and con’s, the main motivation would be to ring-
Simply put, the majority of mainstream lenders don’t like lending for buy to lets to people who have never owned their own home. There are several lenders in the market that do, so get in touch and we’ll help get things moving.
Buy to let lender fees can vary dramatically overall, as with rates, they tend to be slightly higher than for residential mortgages. Some offer no fee’s with higher rates, some a fee with a better rate. Its important to get this right and calculate the total cost, as for example a headline rate of 3.5% with a 1.5% product fee might cost you much more than a 4% rate with a £299 product fee. It all depends on the loan size and your specific criteria, along with your preferences for different types of rate. We can work all this out for you and will ALWAYS get you the best deal available to you.
These tend to work in exactly the same way as residential mortgages. You start with
an initial tie in period of anywhere from 1-
Finding your way through the mortgage maze
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The Financial Services Authority does not regulate some forms of buy to lets.
The Financial Services Authority does not regulate some forms of buy to lets.
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This is assessed either on personal income (e.g. 4 x salary), or on the ratio of expected rental income Vs mortgage payment (e.g. Rent must cover the mortgage payment by 125%). To get the biggest buy to let mortgage you can, you’ll need to find a lender that best fits your situation, and most likely an expert to help you with it, as from here it gets complicated! For example, if you have no personal income but expect rent to be £600 a month, and want a mortgage for £50,000, then you’d need to find a lender that only assesses the application based on the rental income.
Say you find one that does this at a ratio of 125% based on an 8% interest only rate, then the mortgage payment would be £333. As £600 rental income is 180% of the £333 then this is an acceptable proposition. We can help you find out the maximum you can borrow pretty easily, just give us a call or drop us an enquiry with what you’re looking for, and we’ll work this out for you with no obligation.
If you’re looking for a buy to let, getting the right mortgage can be tricky. Speak to an expert about specialist buy to let mortgages…
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Buy to let specialists
Specialists in buy to let mortgages, including mortgages for new landlords, those with existing portfolios, and buy to let mortgages with limited companies.
Whether you’re looking for the best buy to let mortgage rates, or something a little more specific, try our online search engine or get in touch.
It’s the same cutting edge system used by many professional brokers all over the UK, and covers the entire UK Buy To Let market.
To have an advisor show you which mortgages you’re eligible for (if any) and find you the best available rates please click on “full mortgage enquiry” or give us a call.
If you’d like more general advice please fill out the quick enquiry form or give us a call.
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