Buy to Let
A buy to let mortgage is an arrangement in which an individual or company borrows money to purchase property in the private rented sector in order to let it out to tenants.
Wealth Creation through Property
How do they work?
Although similar to regular mortgages once in operation, there are some differences in the lender assessment process. Although your income will be assessed, it is the expected rental income that the property will generate that is of more importance. We can help you to understand your options.
What can you Borrow?
The maximum you can borrow is linked to the amount of expected rental income. Typically, a lender will expect rental income to be 25%-45% higher than the mortgage payments. Irrespective of the maximum loan available based on rental income, the lender will typically cap borrowings at 75% of the purchase price or valuation (whichever is lower).
Who is Eligible?
Lenders typically like borrowers to be homeowners but there are some lenders who will consider first time buyers and first time landlords subject to circumstances. The minimum and maximum age is typically 21 and 70 respectively at application. We can assist you with individual and Ltd Company applications.
To find out more and determine if you are eligible, book in a call with one of our advisers to discuss your circumstances.
Our Process
Initial Call
Book in a call to discuss your circumstances and requirements. If you have already found a property we will also research the expected valuation and rent to determine how much you can borrow.
Application Submission
Once you have found a suitable property and had an offer accepted, we are ready to get the mortgage process started for you with the lender by submitting a full mortgage application.
Request for Documents
Once we have established we can assist you, we will request all of the appropriate documentation. A complete list of documentary requirements can be found here.
Mortgage Offer
The lender will want to verify two main areas. Your ability to pay and the suitability of the property you are purchasing. Once they have verified your documents, credit status and received a satisfactory valuation for the property, the mortgage offer will be issued.
Find a Property
You are now ready to find that ideal investment property. We know many estate agents will request an Agreement in Principle in order to view. We can alleviate that requirement for our clients.
Completion
A copy of the mortgage offer will be issued to you, to us and to your nominated solicitor. Once the mortgage offer is issued all that remains is for your solicitor to complete the conveyancing process and then you can collect your keys to your new property.
Because We Play By The Book We Want To Tell You That…
There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.
You may have to pay an early repayment charge to your existing lender if you remortgage.
Your property may be repossessed if you do not keep up repayments on your mortgage.
A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £795.