Buy to Let
Advantageous mortgage rates and low performance by conventional savings and investment products mean that property / buy-to-let investments can be an investment for the future.
Rent Potential – The decision any mortgage lender will make as to whether or not a mortgage will be offered / how much money they will lend, is usually based on the rent you will earn and not your income. Some lenders will calculate the rental income on 125% – 130% of the monthly mortgage payment at a nominal rate of between 5% & 6%.
Does it Matter how Much I Earn? – No, Signature Mortgages has access to lenders who have a no minimum income rule and base their decision on the rental income the property may achieve. however the majority of lenders do require you to have a minimum income of more than £25,000 per annum.
Interest Only – Yes you can have interest only on a buy to let mortgage no matter what the loan to value is. Unlike residential mortgages, buy to let mortgages are not regulated and are therefore not subject to the same interest only criteria that residential mortgages are subject to.
Interest Rate – Buy to let mortgages typically have slightly higher interest rates than residential mortgages.
Larger Deposit – Typically a minimum of 20% – 25% is required.
Repayment Method – Is typically on interest only, but you can have a buy to let mortgage on Capital Repayment.
Capital Growth – In other words, are you looking to make a profit month on month or are you looking to make a profit through increased equity from the second property as it increases in value over time? The decision may affect the type of property you purchase.
Can I have more than one Buy to Let mortgage? Yes – you can take out multiple mortgages with different lenders – but in most cases, it is only possible to have one loan per property. This is because the loan is secured on the title of the property – and each lender would want to have first claim – should anything go wrong!
Can I buy more than one property? Yes you can! In fact most lenders will allow you to buy up to 4 or 5 properties. This also means that they are willing to lend sums of the order of £500,000 or even £2m (subject to status).
Can we get a Buy to Let mortgage in joint names? Yes – you can.
Who can set up a Buy to Let mortgage – individual or company? Both!
Can I get a Buy to Let mortgage in the name of a Limited Company? Yes – although, often lenders expect that the Limited Company is formed for the sole purpose of purchasing, owning and managing properties.
Please feel free to contact Signature Mortgages today for a free initial no obligation discussion on 01745 585859 or firstname.lastname@example.org Alternatively, use the Call Back form to register your enquiry. We will deal with your enquiry in as flexible way as possible, whether it’s face to face, by telephone, post or e mail.
YOUR HOME OR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
MOST FORMS OF BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY
FOR ESTABLISHING YOUR NEEDS, UNDERTAKING RESEARCH AND MAKING A RECOMMENDATION, WE CHARGE A FEE OF £95 ON APPLICATION UP TO £1,295 ON COMPLETION, HOWEVER OUR TYPICAL FEE WILL BE £95 ON APPLICATION AND £595 ON COMPLETION. OUR FEE BECOMES PAYABLE WHEN WE PROVIDE YOU WITH OUR RECOMMENDATION(S).
IF YOU CHOOSE TO PROCEED WITH OUR RECOMMENDATION AND THE MORTGAGE GOES AHEAD, WE WILL ALSO BE PAID COMMISSION FROM THE LENDER FOR ARRANGING THE MORTGAGE ON YOUR BEHALF.
IF YOU APPLY FOR A MORTGAGE THAT DOES NOT GO AHEAD, YOU WILL RECEIVE NO REFUND