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Buy to let mortgages are designed for individuals who want to buy a property with the intention of renting it out. It is against the UK regulations to rent out your property if you have a normal residential mortgage, without informing your mortgage lender. The mortgage lender will be obliged to change your mortgage to a special “buy to let” mortgage which has different terms. The lenders will take into account the likely rental income that a property is capable of generating when they consider a loan application.
Nowadays, more and more people are investing their money in bricks and mortar. Lenders, on the other hand, are focused on providing the best mortgage products and not losing money through lending on properties incapable of yielding enough income to pay the mortgage back.
Here at The Mortgage Bureau, we have experts who can advise you on the best buy to let mortgage deals that suit your specific situation. We can advise you as you build your rental property portfolio is that is your objective.
Although buy to let may seem as simple – get a mortgage for your new property, rent it out and then use the rental income to pay back your mortgage and make a capital gain as the value of the property increases – it is easier said than done.
There are several different things to consider before you get a buy to let mortgage.
For instance, each lender will have their own formula for how much rental income is likely from each property, regardless of what you may think. Similarly, the maximum loan that will be available is also dependent on the deposit that you can pay.
Besides that, the cost of conveyancing, mortgage arrangement fees, running costs of the property are also considered during the process. Some lenders assist investors by taking into account their salary, but not all of them do this.
The majority of the lenders require at least a 20% deposit and the maximum loan amount is linked to the monthly rental yield. And if you are not already a property owner or you cannot prove alternate sources of income, things can become pretty difficult.
At The Mortgage Bureau, we have years of professional experience and top experts who are able to offer you guidance and answer all your questions. Having fully understood your circumstances and objectives, we will carefully search through all the available lenders and make sure to find you the most suitable offers to consider.
In simple terms, our company does all the hard work for you to find you the best deal from the whole of the market. Doing this yourself is not possible as only some lenders deal directly with borrowers and, in any event, the process would take many hours on your own.
Property has historically proved to be an excellent investment compared with savings accounts or the stock market. It has provided a consistent return over the long-term and attracted many to become landlords. Partly in response to this, there have been many changes to the taxation of buy-to-let properties during recent years making it a less simple choice. We are always up-to-date with the regulations as they change, and we ensure that our clients comply with the letter of the law to avoid any serious consequences.
If you need help with your first buy to let property purchase or you want to add another property to your current portfolio, our experts at The Mortgage Bureau Peterborough office can help you.. Give us a call today!
Our Peterborough office enjoys a prime location not far from the Queensgate Shopping Centre and accompanying car parks. A number of local estate agents with which we work closely are located nearby.
We serve customers from North Cambridgeshire, Lincolnshire, Rutland, Leicestershire and Northamptonshire from this office. The city is 70 miles (110 km) east of Birmingham, 38 miles (61 km) east of Leicester, 81 miles (130 km) south of Kingston upon Hull and 65 miles (105 km) west of Norwich. Commuter areas around Peterborough include Eye, Yaxley, Whittlesey, Stilton, Crowland, Market Deeping, Wittering, Sawtry, Langtoft, Ramsey, Stamford, Oundle, Warboys.
The Mortgage Bureau, Stuart House East Wing, St Johns Street, Peterborough, PE1 5DD | Telephone 01733 358488 | Website | Facebook
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. A typical fee is £295. Ask for a personalised illustration. The Mortgage Bureau is a trading name of A.M. Mortgages (UK) Ltd. Authorised and regulated by the Financial Conduct Authority. The Financial Conduct Authority does not regulate some aspects of Buy to Let mortgages.