Purchasing a buy-to-let in King’s Lynn? Here’s how to understand your mortgage options

Investing in a buy-to-let property is a popular route for many, with around 45% of adults in the UK owning or investing in property they rent out, and a whopping 60.91% of 25- to 34-year-olds owning a property they intend to rent out in the future according to this research.

Privately rented property remains in high demand across many UK towns and cities, with King’s Lynn in particular creating a consistent need for well-located, well-presented rental homes. For those looking to purchase buy-to-let properties locally, understanding your mortgage options is just as important as realising the potential of a rental in this desirable area. Read our guide to just that before starting your buy-to-let property search…

Your buy-to-let mortgage options

In England, there are two main routes to financing and managing your buy-to-let purchase. The standard buy-to-let mortgage is the most commonly utilised option.

While, on the face of it, a buy-to-let mortgage works in a similar way to a residential mortgage – you take out the mortgage in your personal name to buy a property intended for rent – there are some key differences between the two. This is especially true when it comes to your deposit requirements as the National Residential Landlords Association (NRLA) describes:

“Buy-to-Let Mortgages: These usually require a larger deposit, often around 20%-40% of the property’s value. The higher deposit reflects the increased risk lenders associate with rental properties, given that tenants may default on rent or the property may experience void periods (times when it’s vacant).”

Interest rates on buy-to-let mortgages also tend to be higher, while affordability assessment criteria is based on expected buy-to-let returns rather than personal income. Alongside personal ownership via a buy-to-let mortgage, some investors choose to purchase through a limited company. You can find more advice on limited company buy-to-lets here.

The buy-to-let market of King’s Lynn

King’s Lynn is a particularly desirable place for landlords and investors to purchase property. Property prices in King’s Lynn are slightly below the national average, which is great news if you want your budget to go further. There is also continuous demand with a 5% year-on-year increase in average private rents. Rental yields within the area have been reported at around 5.8% too.

When comparing King’s Lynn with neighbouring towns like Wisbech, the local rental market is strong with higher rents, active tenant demand, good liquidity and reasonable entry costs offering the perfect conditions for new and experienced investors.

Buy-to-let tips for King’s Lynn investors

Mortgage and investment success start from day one when purchasing in and around King’s Lynn. Hit the ground running by getting to grips with the lending criteria (including deposit requirements and expected affordability assessments) early. Be equally proactive by stress-testing your cash flow – is it built for void periods, maintenance costs and extras like landlord insurance and safety certification?

Choosing the right mortgage product is another essential, and thankfully, you don’t have to do this alone. Our buy-to-let mortgage specialists can help you understand your options, access the best deals and make the most of buy-to-let investment. Better yet, we’re also based in King’s Lynn, and have a unique insight into local market conditions as a result.

Ready to get started? Contact our local mortgage advisors right here.