Buy To Let Mortgages

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Finding the right buy-to-let mortgage to suit you can be minefield and they have become more competitive in recent years.  The role of your mortgage adviser is more important than ever and with today's interest rates, you want to generate as much profit as possible by finding the best mortgage deals.

Many lenders offer tailor-made mortgages for buy-to-let investors.  Typically lenders allow people to borrow up to 80% of the property’s value.  The size of the loan is usually linked to the expected rental income.  As a guide your lender will expect your monthly rental income to be at least 25% greater than your monthly mortgage payments

If you are looking for ways to save money by remortgaging your existing buy-to-let property, we have access to hundreds of buy-to-let mortgages by searching the whole market. This means we can get the right deal so ultimately you receive the best returns from your investment.

The choice of mortgages will be between a repayment mortgage or an interest only loan.  It depends on what you want from the rental income throughout the mortgage term. If you need some of the rent to live on immediately then an interest-only mortgage would probably be more appropriate because, after making the interest payments, there may be some rent left over .. If you don't need the rent for yourself, then all of it can be used towards the interest payments with the surplus being used for the repayment of the capital or, indeed, to help finance a further buy to let investment.

You will also need to keep some cash spare to cover void periods and repairs to the property. And, don't forget tenants who fail to pay their rent too - not only does it mean you're subsidising their housing when they don't pay up but it's an expensive business to have them evicted from your property.  So the advantage of a repayment mortgage is that the property will be all yours when you come to end of the mortgage term.

The advantage of an interest-only mortgage is that your monthly mortgage payments will be lower so more of the rental income should be available to you - and you don't need to worry about the capital repayment until the end of the term. The risk is that, if you haven't made other arrangements, you may have to sell the property eventually to pay off the original loan.

Bear in mind that you can get flexible buy-to-let mortgages which enable you to enjoy an element of both the repayment and interest only mortgages. Access to cash is immediate in an emergency and, if you don't need to get at it, any surplus can be used to repay the capital in the meantime. These are, however, slightly more expensive and you need to be very disciplined about how you manage your account.One of our expert independent mortgage advisers will help you plan your portfolio by understanding your strategy in both the shorter and longer term. They'll look at both your aspirations and exit strategy - then work out a mortgage plan designed for your individual needs, as well as taking care of all the lender communication and paperwork for you.

You may have to pay an early repayment charge to your existing lender if you remortgage.

There is no guarantee that it will be possible to arrange continuous letting of the property, nor that rental income will be sufficient to meet the cost of the mortgage.

Most buy-to-let mortgages are not regulated by the Financial Services Authority.

Useful Links

>>> Mortgage Sharing (coming soon)
>>> Commercial Mortgages
>>> Mortgage Calculators
>>> Interest Only Mortgages
>>> Mortgage Blogs - News & Articles

Your home may be repossessed if you do not keep up repayments on your mortgage.

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