Buy to Let Mortgages
Buy to let mortgages have been around since 1993 when the Association of Residential Letting Agents coined the term. Before then landlords and residential property investors used commercial mortgages to buy property to rent to tenants. If you are buying a property to rent it out, or looking to remortgage an investment property, you won't be able to get a standard residential mortgage. Instead, you'll need a buy-to-let loan. As many existing landlords already know, this market has shrunk considerably over the last few years. However, there are still mortgages out there.......
Whether it be a one off investment, a student let or a portfolio of properties many people have demonstrated success and financial rewards from entering the buy to let market.
Many borrowers don't realise that buy to let mortgages don’t have to mean massive fees, despite the mortgage lending contraction of the last 5 years. Taking specialist advice from experts like ours here will help you to avoid those excessive fees and tie-ins that have caught many other buy to let investors out.
Some buy to let mortgages are not available on the high street and can only be accessed via intermediaries like us. As a mortgage broker with access to the whole buy to let and commercial mortgage market, we are independent of lenders and therefore impartial, so we will be able to use our expertise to recommend the correct mortgage for you. Before selecting any mortgage broker it is essential to check that they are independent, otherwise you may not receive unbiased advice.
The amount you can borrow will depend on the rental income rather than your salary, as buy-to-let lenders take your expected rental income into account when deciding how much you can borrow: Furthermore, the size of the deposit you can raise can be even more crucial. Specialist advice to help you compare the options available to you is critical if you are going to get the best deal, given that competition in the buy-to-let market has dwindled, along with new lending, since the onset of the credit crunch.
Many of the largest buy-to-let lenders of recent years have merged or become state-owned as a result of the crisis. But there are still attractive buy to let mortgages available if you know where to look, as our experts do.
While the number of buy-to-let mortgage deals has shrunk over the past two years, there are still a number of different options available. As with standard residential mortgages, you can choose from fixed or variable rate deals and the terms of the products vary.
Another part of our buy to let mortgage service is ensuring you have accounted for the two main elements of taxation on investment properties, namely rental income and capital gains tax. These can have a huge impact on the profitability of your property investment and we can advise you on this aspect so that you go into the transaction with your eyes wide open.
Whether this is your first move into buy-to-let or you’re an existing landlord, make sure you talk to us first. Give us a call today or fill in the enquiry form on our contact page.