“If you are looking for this type of mortgage product we could help you!”
Buy to Let Mortgages
We at A Mortgage 4 You have helped many clients step onto the Buy to Let ladder, from residential Buy to Lets and then moving onto Multi- Let property and Commercial Investment Property. If you are based in the UK, or an Ex Pat and are looking for looking for a buy to let mortgage then you can have come to the right place .We are Independent Mortgage Advisers with access to the whole of the market and to all of the mortgage clubs with special products not available on the high street.
Terms & Repayment
The term of the mortgage can be anything from 10 years up to 45 years, with some lenders taking a different view when the mortgage term goes post the normal accepted retirement date, but it is far more flexible than a normal residential mortgage, with the term extended to age 85 with some lenders.
Method of Repayment
Most clients chose to opt for an interest only mortgage, but clients can chose a capital and interest repayment if they wish, but must accept tax relief will only be given on the interest only portion of the repayment. Clients should also bear in mind that lenders may apply a stress test to the capital and interest repayment, which may change the amount that can be borrowed using the rental income to service the debt.
Max Loan to Value
Lenders are far happier with low loan to value mortgages, as the rates of interest charged on the higher loan to value products will make very clear. Lending is about risk, and yes we can now arrange BTL mortgages up to 85% LTV, but if you can bring that down to 75% LTV the interest rates and the fee structure, are far more attractive.
We would normally expect a maximum loan to value for ex-pats to be 70% LTV
We now have a number of lenders who will consider HMO properties at 80% LTV but they must be fully licensed by the local authority and must meet all of the requirements set by the local authority. They are popular with investors as the income stream is generally very attractive, but this is not for first time landlords.
First Time Landlords
Lenders prefer clients to be home owners, with a minimum income of £25,000pa, and they must have a 25% deposit, this may change of course as the property market gets stronger, and lenders feel that they can be more flexible.
Bridge to Let
With the massive change in the demand for BTL properties in 2013/14 clients have been looking at properties that were in need of refurbishment, either through a private sale or at auction. We now have a new product which allows you to purchase the property, carry out the works needed, and then switch onto a BTL mortgage based on the new valuation and rental income. This product has proved to be a real winner with landlords looking to purchase under value.
A Mortgage 4 You Best Mortgage Buys
Buy to Let Mortgages are the type of mortgages that are designed for people who want to invest in the booming property market by purchasing one or more properties/houses and letting them to various tenants. Buy to Let mortgages have been growing more and more popular over the last 5 years, with a boom in the buy to let mortgage market, and this is despite the general down turn in the property market. The property owner can then benefit from any capital appreciation in the value of the property itself together with a fairly secure income in a very difficult market.
Mansion Park Limited is a credit broker not a lender.
More About Buy to Let Mortgages
The ability to raise a mortgage on a Buy to Let property is based on the rental income which should cover the mortgage interest payments by an average of 125% which will of course vary slightly from lender to lender.
With the current downturn in the property markets across the UK apart from London, within the M25, and regional hotspots, high loans to value have been squeezed at times but 85% LTV is still available on limited funds basis subject to valuation, but 75% LTV is more the norm for most lenders who despite the buoyant BTL market are still somewhat cautious.
Lenders will consider most properties for BTL purposes but tend to stay away from the following;
• High rise flats
• Ex-local authority properties ( each on its own merits )
• Flats above shops ( down to the surveyor )
• Non Standard construction
• Properties let to the local authority.
• Properties let to more than one family unit..
Buy to Let Mortgage Term
The term of the buy to let mortgage can be somewhere in the region of 5 to 45 years depending on the age of the applicant and in some cases the outstanding term on leasehold property or to fit in with the clients wishes.
When considering a buy to let purchase it is important to know the demand in the area in which you intend to purchase for the type of property that you are looking at. It may be worth while getting help from a letting agent who knows the area, and is a member of ARLA (Association of Residential Lettings Agents).
There are also a number of good websites where you can get a good idea of property prices and current rental demand, ( Zoopla, Up my Street, Ladders and many more )
The letting agent may also be able to fill you in on what the likely pitfalls will be in any particular area if not you should always do your own research on the area and the market first, before you commit to purchase any property, or let A Mortgage 4 You help you today. Researching the area is an essential part of any property purchase. Always research first, find out as much as possible about the area as you possibly can, from tenant demand to any trends that may help you evaluate the areas suitability, such as employment, student demand, and access to the bus, train and road links. If you have any concerns about the crime in the area the Police have a local community officer who can advise you on areas to avoid.
By planning with consideration, and purchasing carefully, you ought to have acquired a property which does not require too much maintenance and appeals to the tenant market. You should also have taken into account initial rent void periods in which the property is uninhabited and not producing income.. When participating in a buy to let mortgage, insurance is always worthwhile to cover you in the times in which your tenant fails to keep the rent payments or causes damage to the property..
Buy to Let Mortgage on the High Street
Many of the high street banks and building societies now offer a buy to let mortgage product, together with a number of specialist lenders who tend to concentrate on the investment property sector. However some are more competitive then others, and why not let us do the research for you. Independent mortgage brokers will also be able to recommend mortgage arrangements which are not available on the high street and which should meet your buy to let mortgage requirements on the most competitive terms. Here at a mortgage 4 you we have access to the full buy to let mortgage market and with our sourcing systems and over 40 years of experience in financial services, we will find you the most suitable product on the most competitive terms.
Did you know that buy to let mortgages become so popular in 2006 that 10% out of all mortgages taken were buy to let mortgages, that percentage is even higher today. The success of a buy to let mortgage is down to the increasing appreciation and popularity of buy to let as part of your investment portfolio. Property is a great way to invest money for the long term, with the stock market being far more volatile. The UK population is growing by the day, and with this comes the greater demand for rental property, which leaves the landlords in a positive situation.
Here at a mortgage 4 you we have helped many clients arrange a buy to let mortgage with competitive interest rates as well as other added bonuses. If you are interested in buy to let mortgages, or would like to apply for one then fill out our enquiry form or call us on 0345 2 605 506.
Properties which are more difficult to place
- High rise flats ( over 4 storeys )
- Ex-local authority property each on its own merits )
- Flats above shops ( down to the surveyor )
- Non- standard construction
- Properties let to DSS tenants
- Properties let to more than one family
- Flats where there is less than 50 years left on the lease at the end of the mortgage term
- Flats where the landlord has disappeared and there is no formal management committee.
The key to buying a property as an investment is research, making sure that you purchase in an area where there is real demand for the type of property for rental, and what is a realistic rent. All lenders now build into the rent calculation a stress test that is based on what might happen to interest rates in the future, and what impact this may have on your ability to service the debt. Buying in the right area at the right price, with real demand for that type of property is essential to your success in the property market. Never buy on a whim, or after one visit, unless you have done your homework very well.
The Financial Conduct Authority does not regulate some forms of buy to lets, commercial loans or will writing, secured loans or bridging finance.