Buy To Let Mortgages
Whether you are an existing landlord, first time landlord or looking to purchase a Buy to Let investment property through a limited company we can help you. With the underwriting and criteria for Buy to Let mortgages having changed so much in recent years, where factors such as your tax band, personal income, initial rate period, rental income and varying rental stress tests can all influence the amount of mortgage available to you, obtaining expert whole of market advice can be critical in ensuring that the product and lender selected not only meet your loan requirements but also take into account all of the above factors.
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- Buy To Let Mortgages
The One That’s Right for You
Depending on your Buy To Let investment Goals, One of the Following Will Be Right For You
Buy To Let (Personal Name)
Where one or more individuals purchase a Buy To Let property in their own names.
Let To Buy (Personal Name)
Where one or more individuals are converting their existing residential property to a Buy to Let.
Limited Company Buy To Let
Where individual(s) setup a Limited Company through which they purchase a Buy to Let Property.
Buy To Let Frequently Asked Questions
We have compiled a list of Top 10 questions that we get asked which we hope will offer a useful insight for existing landlords and new Buy to Let investors alike.
1. How much can I borrow?
2. Is there anything else that might affect how much I can borrow on my buy to let property?
Some lenders on our panel will also allow you to use your personal income in circumstances where the rental on its own not sufficient to get the mortgage amount that you require, this can be invaluable in situations where you have a limited deposit/personal funds to complete the purchase and the mortgage that the lender is able to offer is not sufficient.
3. What is a Stress Test?
For example:
You would like to borrow £300,000
The lender that you apply to uses an interest rate of 5% with a coverage value of 125%.
5% of £300,000 = £15,000
To arrive at the monthly payment the lender will divide £15,000 by 12 = £1,250
Then it would be multiplied by the coverage percentage of 125%:
i.e. 125% of £1,250 = £1562.50
Therefore, the minimum rent that you require to get a loan of £300,000 is £1,562.50. As mentioned above, if this rent is not achievable, we could look to recommend a lender that will allow you to use your personal income to top-up the rental income.