Buy to Let
Looking for a Buy to Let mortgage? Yeah, we can help!
Helping landlords build property empires!
We understand that Buy to Let (B2L) mortgages aren’t simple, but we’re experts in helping landlords secure mortgages on their properties.
We can help!
We can help no matter what your mission is, whether you’re
- Looking to buy a rental property
- Buying a rental property
- Re-mortgaging a rental property
- Just looking for information
- We’re here for you.
How do Buy to Let mortgages work?
Buy-to-let mortgages are a lot like ordinary mortgages, but with some key differences -
- Interest rates on buy-to-let mortgages are usually higher.
- The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value (although it can vary between 20-40%).
- Most Buy to Let mortgages are interest-only. This means you don’t pay anything each month, but at the end of the mortgage term, you repay the capital in full.
- Most Buy to Let mortgage lending is not regulated by the Financial Conduct Authority (FCA).
- There are exceptions where the buy to let mortgage may be regulated by the FCA, for example, if you wish to let the property to a close family member (e.g. spouse, civil partner, child, grandparent, parent or sibling), these are often referred to as a consumer buy to let mortgages and are assessed according to the same strict affordability rules as a residential mortgage.
Can I get a Buy to Let Mortgage?
You can get a buy to let mortgage if;
- You want to invest in houses or flats
- You can afford to take a risk: investing in property is risky, so you shouldn’t take out a buy to let mortgage if you can’t afford to take the risk.
- You already own your own home, whether outright or with an outstanding mortgage, you’ll struggle to get a buy to let mortgage
- You have a good credit record: and aren’t stretched too much on your other borrowings. E.g your existing mortgage and credit cards
- At fish4mortgage we have lenders that will give you a buy to let mortgage even if you earn a minimal income, speak to one of our team today and see if your income can affect your eligibility when it comes to getting a buy to let mortgage.
- You’re under a certain age: lenders have upper age limits, typically between 70 or 75. This is the oldest you can be when the mortgage ends not when it starts. For example, if you’re 45 when you take out a 25-year mortgage it will finish when you’re 70. 3rd level example page - Buy to Let https://xd.adobe.com
The Financial Conduct Authority does not regulate some aspects of buy to let mortgages. Past performance is not a guide to future performance. The value of property investments and income can go down as well as up and investors may not get back the amount originally invested. The value of aa property is generally a matter of opinion and the true value may not be recognised until the property is sold. It may be difficult to sell or realise the value of the property in adverse market conditions.
Borrowers will still be responsible for maintaining the payment of any mortgage in the event that the property is not rented out and therefore may wish to make suitable provision for this event. We suggest that you seek legal advice and advice on tax issues before purchasing a property to let.
How much can I borrow?
- The maximum you can borrow is linked to the amount of rental income you expect to receive.
- Lenders typically need the rental income to be 200-300% higher than your mortgage payment.
- To find out what your rent might be, talk to local letting agents, or check the local press and online to find out how much similar properties are rented for.
