We are experts in Buy to Let mortgages, our advisors have a wealth of experience with both individual, limited company Buy to Let, portfolio landlords as well as complex incomes. Read on to find out more about Buy to Let mortgages.
What is a Buy to Let?
Its is a property bought specifically to be rented out to tenants, rather than being lived in by the purchaser.
Investors can generate an income both via the rent charged and by making a capital gain when they come the sell the property. To generate this monthly income, the rent charged must be higher than the monthly mortgage repayments. They carry risks like all investments.
- Rising interest rates
- Difficult Tenants
- Unable to sell if market changes
Your tenants could potentially take out income protection which would help them pay their rent if they are unable to work due to sickness.
“This company have been amazing when doing my buy to let mortgage on my new property”
Why us?
We are experts in Buy to Let mortgages, our advisors have a wealth of experience with both individuals, Ltd company Buy to Let, portfolio landlords as well as complex incomes.
Regardless of the complexity of your situation and circumstances we can explore potential financing routes available for your situation.
For expert advice on Buy to Let mortgages, speak to one of our independent specialists today.
Buy-to-let mortgages
If you can’t buy your investment property outright, you’ll need to apply for a mortgage. But this will have to be a specific buy-to-let mortgage. A standard or ‘residential’ loan is only relevant when you also plan to live in the property.
Buy to Let mortgages are different to residential mortgages. One of the main ones is how your affordability is calculated.
Instead of your salary, the lender will view the potential ‘rental income’ of the property as your primary income source. Many lenders will then take your personal income into account as a secondary factor.
The financial leeway factored into rental cover calculations accounts for non-rental payments and ‘void’ periods when the property is without tenants. It reassures the lender you will still be able to meet your mortgage commitment.
A deposit on a buy-to-let mortgage also tends to be bigger than the one required for a standard loan. Most buy-to-let lenders expect a deposit of at least 25% and the very cheapest deals usually require 40% or more.
To find out about a specific property you are interested in, contact us today
Looking for ‘Let to Buy’ instead?
Let to Buy is when you let your existing property in order to purchase a new one. This works differently to a normal Buy to Let mortgage as you will also be taking a new residential mortgage as well.
Find out more about Let to Buy mortgages
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Prospect Tree Mortgages, Acorn Barn, Wembdon Business Park, Smeeth, Ashford, Kent TN25 6SZ
Telephone – 0800 8620 840
Email – contact@ptmortgagesltd.co.uk
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A mortgage is a loan secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it. Click here to see our fee info. Think carefully before securing debts against your home or property. The financial conduct authority does not regulate most forms of buy to let mortgage. Prospect Tree Mortgages LTD is the appointed representative of TenetConnect Services Ltd, which is authorised and regulated by the Financial Conduct Authority. TenetConnect Services Ltd is entered on the Financial Services Register (www.fca.org.uk/register) under reference 150643. Prospect Tree Mortgages Ltd is registered in England and Wales under reference 10112043. Registered Office Address: Acorn Barn, Wembdon Business Park, Smeeth, Ashford, Kent, TN25 6SZ. The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.