BUY TO LET MORTGAGES
Simply Mortgages are a specialist buy to let mortgage broker, we can help you secure Buy To Let mortgages from the whole of the market.
A buy to let mortgage is a mortgage secured on a property that you intend to rent out to a tenant. You can rent the property to individuals, to a company or in some scenarios to family members. A buy to let mortgage is assessed upon the rental income the property will achieve and your own personal income.
You can typically purchase a buy to let property with a minimum deposit of 20% of the purchase price. You can choose to either just pay the interest that is charged which is known as interest only, alternatively you can opt to pay the loan balance as well and this is known as a capital repayment.
The amount you can borrow on a buy to let mortgage will depend on the average market rental income value for the area where the property is located. Alternatively some buy to let mortgage lenders will work out the maximum loan using just the rental income.
Some lenders will allow you to increase the borrowing by supplementing the maximum borrowing with an effective guarantee based on your personal income. This is known in the industry as top slicing.
Each lender will work out how much you can borrow using a different calculation. We will use our extensive knowledge and experience of the market to match you to the correct bank, building society or specialist lender suitable for your mortgage needs.
If you intend to let out your main residence, there are two solutions.
Firstly, you can remortgage the property onto a buy to let mortgage. The second option is to contact your existing lender and request consent to let. Most lenders will be be considerate of your circumstances and give you consent to let.
The maximum time period the lender will allow you to let out the property varies. It is common that the lender will review your situation every 12 months. Some lenders will either charge a fee to give you consent to let or alternatively will increase the interest rate payable. They may move you on to a full buy to let product which means you would not have to review your situation again until that product expires.
At Simply Mortgages we have both knowledge and experience of the buy to let market. We work closely with our clients to ensure we fully understand your property strategy and if you don’t have one, that’s OK as we can help you formulate one.
Using Simply Mortgages gives you access to high street banks, building societies, private banks and specialist buy to let lenders. Our aim is to provide you with expert buy to let strategy and advice. We will ensure we save you both time and money and put you in prime position to start your property investment journey.
To discuss your requirements in more detail, use the link below.