Are you looking for your first buy-to-let property?
Do you have an existing property portfolio?
Buy-to-let mortgages have become considerably more popular over recent
years as more and more people see the potential value in becoming landlords
and investing in property. In addition to rental income and the potential
of property value appreciation, many landlords have a long term strategy
and use property as an alternative method of retirement funding.
Things to bear in mind
Speed is vital –
Finding property at the right price is important and when you do you need
to move quickly, we understand this and in many cases we are able to have
your buy-to-let mortgage agreed within minutes.
Who is eligible? -
Buy-to-let mortgages are available for most scenarios, including first-time
buyers, remortgages, and limited companies and professional landlords.
We will review your own personal circumstances and research the whole
of the market to find a suitable buy-to-let mortgage for you.
How much can be borrowed? -
Typically most lenders insist on the rental income being between 120-140%
of the mortgage payment. However, as Lenders deals become more competitive,
it is possible to obtain more flexible lending criteria. We have access
to exclusive mortgage schemes which do not use this method of calculation.
Portfolios –
Many Landlords continue to purchase after making their first buy-to-let
purchase, attracted by the prospect of multiple property ownership. As
a result, many investor landlords now re-mortgage to gain more favourable
rates and to raise further capital for additional property purchases.
As part of portfolio lending we are able to improve your cash flow whilst
also improving the terms of your existing finance.
Let-to-Buy -
Let-to-buy mortgages are ideal for those who are looking to move house
but are either struggling to sell, or don’t wish to sell their existing
property. By letting out your property you can use the rental income to
meet the mortgage repayments without having to rely on your own income.
A number of High Street lenders are willing to consider a second residential
mortgage where the rental income is sufficient to cover the mortgage repayments
on the first mortgage.
Risks -
Although buy-to-let property investment continues to be popular, there
are a number of risks you should consider before you purchase;
- Property prices can drop, particularly in the short term
- Interest rates may rise
- Your money is tied up in the property and selling may not be as quick
as you need.
- The property needs to be maintained
- You may experience problems finding tenants
Property is a long term investment and is by no means risk free. This
means it is essential you seek professional advice before seriously considering
buying to let.
