YOUR BUY TO LET
Our advisors are experienced landlords
BUY TO LET
Our advisors are experienced landlords
Become a landlord
If you are considering becoming a landlord or expanding your portfolio you need to understand the ever-changing rules and criteria of buy to let mortgages to ensure your investment is working hard for you.
How much deposit do you need? How much can you borrow? What are the best rates available? It’s best to chat with an independent mortgage broker who will listen to your objectives and give you the information you require to make decisions.
Chat over your objectives with an Expert Mortgage Adviser now on
01273 736536
Chat over your objectives with an Expert Mortgage Adviser now on
01273 736536
4 simple steps to secure the best buy to let mortgage
Step 1
Book a time to chat over your objectives and circumstances with a mortgage broker, who is a buy to let investor.
Step 2
Let your personal mortgage broker save you time by working out all the costs, researching the market, and giving you the confidence to invest.
Step 3
When you are happy with the advice and have found the right property to purchase, your mortgage broker will apply online for the best mortgage product for you.
Step 4
Your dedicated relationship manager will see you all the way through to owning your buy to let property and will keep you well informed along the way.
Start saving your money and your time, get independent advice today!
What you need to know…
How does a buy to let mortgage work?
A buy to let mortgage is a loan secured against a property which you own and intend to rent out to a tenant. The big difference between a residential mortgage and a buy to let mortgage is that that amount you can borrow is assessed mainly using the rental income from the property being mortgaged rather than your own income.
To give you an idea of what you could borrow try out our ‘How much can I borrow?’ calculator. As a landlord you may be able to have multiple mortgages and properties.
How much deposit do I need?
You may need as little as 15% for the deposit however most lenders require a 25% deposit and products with less than a 25% deposit are less attractive. Your deposit amount is frequently dictated by the rental income of the property.
Property prices are typically higher in the South East and, while rents are higher, it is also common that deposits need to be 30%+ due to lenders’ rental calculations. Most of our advisers have been landlords for many years and have the knowledge to potentially unlock better deals and lower deposits for you.
Chatting with an existing landlord and mortgage expert will be beneficial for you to know how much you will need for the deposit and other associated costs. You may be able to raise a deposit for a buy to let by remortgaging and raising monies from your own home or other buy to let investments.
How much could I borrow on a buy to let mortgage?
Unlike a residential mortgage, where the amount you can borrow is based on your salary and your outgoings, a buy to let mortgage is assessed on the rental income that the property is likely to generate. Lenders will typically need the rental income to be at least 125% of the monthly mortgage payments (on an interest only basis) which means that if your mortgage will cost £800 a month, the rent will need to be at least £1,000 a month.
Most lenders will still also require you to be earning an income yourself. To give you an idea of how much you can borrow try our calculator.
Do you pay Stamp Duty Land Tax on a buy to let property?
Yes. Stamp duty (or Stamp Duty Land Tax [SDLT] to give it its full name) is payable when purchasing a buy to let property. The amount varies depending on the price of the property.
The current rates of stamp duty from 1st April 2016 for buy to let properties are:
- 3% of the balance on the first £125,000
- then, 5% of the balance on the portion up to £250,000
- then, 8% of the balance on the portion up to £925,000
- then, 13% of the balance on the portion up to £1.5 million
- then, 15% of the balance on everything over that
Useful calculators
Chat over your objectives with an Expert Mortgage Adviser now on
01273 736536
Chat over your objectives with an Expert Mortgage Adviser now on
01273 736536
Chat over your objectives with an Expert Mortgage Adviser now on
01273 736536
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