Are you looking to dip your toes in the world of rental property? Have you got a large portfolio that needs managing? Regardless of your situation, we are expert in anything and everything buy to let and we can help you obtain the best products for your individual circumstances.
In basic terms, it’s a mortgage for someone who wants to buy a property and rent it out. In certain situations you can even change your existing residential mortgage into a buy to let.
Normally you need at least 25% for a deposit on a rental property, however there are lenders out there that allow you to use as little as 15%. This also applies if you are looking at converting your existing mortgage into a buy to let mortgage. You will need to have as much in equity.
You don’t have to take a buy to let mortgage on a repayment basis, you can choose to repay it on an interest only basis. Generally speaking this type of repayment is more readily available with this kind of mortgage and it can be a good way of ensuring that you are maximising the level of profit from your property by keeping costs to a minimum. It can also be a good way of making sure that you have provision to cover any rental voids or have enough cash spare to help pay for repairs. Get in touch with one of our Leeds mortgage brokers who can give you the facts and figures.
If you are a first time buyer and a first time landlord, getting a mortgage can feel like banging your head against a brick wall.The majority of Lenders like their buy to let applicants to have owned a property (either currently or in the past) before they will agree a buy to let mortgage to a first time buyer, but there are options out there should you be in this position. There are even some specialist lenders who only lender to landlords who have experience.
The definition of a ‘portfolio landlord’ differs from mortgage lender to lender but most often is where an applicant owns four or more mortgaged buy to let properties. Once you become a portfolio landlord, being approved for a mortgage can become difficult, as there are fewer lenders that like this kind of application. On top of that, most banks and building societies are going to want to look at how sustainable your portfolio is and will assess your rental income and outgoings across the board. There are still plenty of lenders who have an appetite for this kind of business and our expert advisers will be happy to help.
There are many specialist buy to let mortgages out there and understanding which category yours falls into can be tough. We have tons of experience in dealing with these specialist products so can advise you properly on which product is going to be right for you.
Most buy to lets aren’t regulated by the FCA as lenders need to ensure they are more flexible to be able to offer their mortgages on rental income as opposed to the affordability of the single applicant.
Most mortgage lenders will class this as a regulated mortgage, so will not allow this scenario, however there are some lenders that allow you to rent to a family member. This is known as a ‘regulated buy to let’.
There are some lenders who don’t require any kind of income in order for you to apply, as the affordability assessment is often based on the rental income received from the property.
Yes and no. Some lenders impose age limits, but some do not impose any at all. Because the rental income is intended to support the buy to let mortgage, your age is not as important as it would be for a normal regulated mortgage.
Some landlords choose interest only in order to maximise the amount of profit they receive from the property and for tax purposes. This is not always the best option, so speak to Wakefield based mortgage broker to better understand your situation.
