Whether you are dipping your toes into the world of rental property or if you have a portfolio of over 100 buy to lets, we can help you ensure you get the best possible deal for your circumstances.
Simply put, a buy to let mortgage is for people who want to purchase a property in order to rent it out. You can change your existing mortgage to a buy to let mortgage in certain circumstances.
Typically you will need at least 25% deposit, however there are lenders on the market that offer mortgages with as little as 15% The same goes for if you want to turn your existing mortgage into a buy to let, you will need the same amount of remaining equity.
Interest only mortgages are more readily available with buy to let mortgages and can help to ensure you are maximising the profit from each property that you rent out. They can also be useful to help you to deal with periods of time where you are not receiving rent from a tenant, or if you need to pay for repairs. Of course, you can opt for a repayment mortgage. Speak to a mortgage broker in Wakefield to understand which option will be better for you.
Lenders generally like borrowers to have owned and in some cases currently own a property before they will offer a buy to let mortgage to a first time buyer, however there are options if you are in this position. Some lenders will only lend to landlords who have previous experience.
Lenders have different definitions of what they class as a portfolio landlord, but in general it is someone who owns four or more mortgaged properties. It can be harder to obtain a mortgage in this instance, as fewer lenders offer mortgages for portfolio landlords and most will assess the financial health of your entire portfolio. There are plenty of lenders who have an appetite for this kind of business.
A HMO or house of multiple occupation is where you are renting a property out to several different tenants not forming one household. These can be harder to obtain than a regular buy to let, as lenders have stricter criteria both for you the applicant and the property itself.
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.