Buy To Let Mortgages

Providing Expert Mortgage Advice on Buy To let Mortgages.
Experienced in LTD company & HMO Mortgages
Your home may be repossessed if you do not keep up repayments on your mortgage.
The FCA do not regulate buy to let mortgages.

Buy-to-let Mortgages

Buy-to-let mortgages have been popular with investors wishing to make a profit from property for some time.

However, the market for buy-to-let mortgages has been going through a number of significant changes and hence, it has become ever more necessary to get professional advice.

What is a buy-to-let mortgage?

Before we jump into discussing what the requirements for getting a buy-to-let mortgage are, it is important to note what the term really means.

You may be thinking that a buy-to-mortgage is just like any other mortgage, in that you simply take a loan from the bank to buy a house. Although this is true to some extent, it is however, a bit different.

A buy-to-let mortgage is essentially a mortgage that you take to buy a house which you will be renting out in the future. That is, instead of living in the house yourself, you will rent the house to tenants.

As such, unlike a usual residential mortgage, the eligibility criteria to get a buy-to-let mortgage differs.

House of Multiple Occupation (HMOs) Buy To Let Mortgages

Buy-to-let implies that you are getting a house on a mortgage that you will rent out to individuals for rental income. However, it might be that you, as a landlord, might prefer more than one household to rent out your property as there may be demand for this type in your area.

The law defines a single household as either a single person or members of the same family living together.

As such, if you are planning to have multiple tenants who are not related to each other, then you will have an HMO buy-to-let property. There are also other things to consider and you should consult your local council department.

HMO can often be a profitable option since it gives better rental yields than that of a single tenant living in the house.

Nevertheless, the maintenance or running costs of an HMO buy-to-let property can be quite high and should be taken into consideration.

HMO property usually requires a specialist lender which we are able to advise you on. Some lenders will only lend on up to 5 beds and other 8. Some won’t lend one property with more than one kitchen, e.g. 2 kitchens and 8 bedrooms may only fit within a very reduced number of lenders. There for available mortgage rates may be higher than that of a single dwelling buy to let mortgage.

The Criteria for Buy to Let Mortgages

As most of you may already know, a bank asks for your monthly salary when you go for a normal residential mortgage. For a buy-to-let mortgage, the bank will also want to know the rent-to-interest (RTI) cover that you are going to make.

Essentially, the bank will primarily assess the amount of rent that you expect to receive and compare that to its own standards to evaluate whether you will be able to pay the monthly interest on the mortgage.

For instance, if monthly interest is £1000 and the rent you expect to receive per month is £1500, then your RTI will be 150%.

The RTI determines the amount you can borrow and generally, banks look for a 125% to 140% RTI as the minimum criteria. Nevertheless, this varies from bank to bank and is something we can advise you on.

In addition, you will also have to pay a deposit amount before you get the mortgage. Unlike a residential mortgage where you may be able to deposit just 5% of the total value of your property, the deposit required for a buy-to-let mortgage usually higher.

Lenders also have minimum income requirements for landlords. Landlords of 4 properties or more are sometimes referred to as professional landlords and some stress testing of their entire portfolio may be required.

How The Mortgage and Financial Advice Place can help?

At Mortgage Advice Place, we have highly qualified experts who can offer you great advice on buy-to-let mortgage options and allow you to get the most profitable deal that suits your needs and preferences perfectly.

Our professionals have extensive experience in supporting clients who had wanted to get a mortgage for buy-to-let properties. This include clients who wanted to purchased HMO buy-to-let properties and limited company buy to let mortgages, LTD SPV’s.

We therefore have experience in providing the right guidance to such clients and advising them on the most suitable option.

We make sure that we understand all your requirements and then provide you with research-backed advice that enables you to assess the most suitable option.

We also thoroughly go through your mortgage applications along with every other necessary piece of documentation so that you are eased from the hassle of doing all the paperwork.

Lastly, we believe in continuous support and as such are always available to discuss your mortgage options based on your changing circumstances.

So, reach us now and secure a deal of a lifetime.

We work with the following
Buy to Let Mortgage Lenders

Contact Us Today

Mortgage Advisor
Thomas C Hughes Bsc CeMAP

Tel: 07779 082 890
tchughes@mortgageadviceplace.com

Principal Protection Adviser
Gavin Morgan

Tel: 07973 341 963
gavin@tmafap.co.uk

The Mortgage and Finanical Advice Place Ltd Registered in England and Wales, under No. 08465507.
Registered office address: 116 High Street, Bangor, Gwynedd, LL57 1NS

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