Trevor Branton

Mortgage Broker Devon

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Offering Professional & Independent Mortgage & Re-Mortgage services across the UK & West Country

Buy to Let Mortgage Solutions

With Pensions suffering and Investments showing poor returns, more and more people are turning to Buy to Let & Let to Buy mortgages for supplementing their retirement income.

Buy to Let mortgages are calculated using various different income and/or interest cost calculators, but in essence these are the main rules

	Your deposit should be in the region of 25%
	The rental income should cover 125% of the mortgage cost
	The property should be on an Assured Short-hold Tenancy

There are other lenders who will consider Buy to Let mortgages outside this criteria, but they are limited.

Specialist lenders will allow Holiday Lets, Student Lets and HMO Lets. Please contact one of our specialist advisers for more information.

Buy-to-Let and Let to buy mortgages have become both a fashionable and profitable investment with borrowers rushing to the latest low price buy-to-let mortgages. Some are adding property to their existing portfolio; others are simply trying to create a source of income to act as a pension when the mortgage is paid off. Whatever your reasons for becoming a landlord, most people will use a mortgage to finance part of the new property.

There are now many specialist products available including fixed rates, discount rates, capped rates, base rate trackers and flexible mortgages.

These mortgages assume that rental income will be used to service the loan, thus allowing the borrower to access finance even though their existing income would not be sufficient. Before you make your investment it is always advisable to do some research. You need to know the area and expected rental income. You should consider things such as local transport, shops, and schools whilst also considering the type of tenants you want.

Unlike normal residential mortgages, you cannot borrow a high percentage of the property’s value for buy-to-let. The amount of deposit you need will depend on the particular mortgage you select. This may be as little as 25%, however you may choose to put down a larger deposit to get a better rate from the lender.

What is a buy-to-let mortgage?

A buy-to-let mortgage is a loan you take out to buy a property which you intend to rent to tenants. The mortgage might be a second charge on your own home or, more usually, it is secured against the property to be let.

It is a long-term investment which you hope will generate an income from rents and a capital gain when you sell the property. But there is no guarantee that you'll make a profit on your investment.

How much can you borrow?

The maximum you can borrow is usually linked to the amount of rental income you might expect to receive.
For example, a lender might require the projected rental income to be 15-30% higher than your mortgage payment. Typically, you'll need to pay a deposit of around 25-30% of the value of the property.

Multiple property landlords welcome.

Some Buy to Let Mortgages are not regulated by the FSA

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE.

As Independent Mortgage Advisers you can chose how we are paid: Pay a fee of 1% of the loan amount with any commission rebated to you, or we can accept commission from the lender together with an administration fee of £295 depending on your circumstances.