SMALL PORTFOLIO | LTD COMPANY | LARGE BTL
Purchasing a property to rent out, can be a great but daunting decision.
There are many reasons why people look to buy property to rent out. A few we come across a lot are:
Depending on your current situation and what you want to achieve you will fall into one of three categories and how you will be treated when applying for a buy to let mortgage will differ depending on which category you fall into (See below). This is why we believe getting professional mortgage advice when looking at buy-to-let mortgages is imperative.
This is someone who has 4 or less properties
If you have 4 or more rental properties, you are classified as a portfolio landlord
If majority or all of your income is derived from property and you have in excess of 10 investment properties, you would be classified as a professional landlord
Unlike residential mortgage applications, which are mainly based on earned income and debts, buy to let mortgages have a separate eligibility criteria.
Some of it is the same or similar to residential mortgages, but there are other factors buy to let mortgage lenders will take into consideration. Affordability still is an important factor when looking at buy to let mortgages, same as with a residential mortgage.
Regardless of whether you have a residential mortgage or buy to let mortgage, you are still responsible for paying the mortgage and as such need to ensure you have funds to cover any additional expenses/ costs associated with the buy to let, especially during void periods where the rental income may cease for a period of time.
The Mortgage interest rates for buy to let mortgages will depend on a number of factors, your mortgage adviser will look at and discuss these in detail when comparing mortgages for you:
For first time landlords looking at starting their journey there are a number of things to think about for both the property and buy to let (btl) mortgages. We have a put together a list of questions below to help guide you:
As you can see from the above, there is a lot to think about around buy to let mortgages and good advice from an experienced mortgage adviser will help give you the reassurance and understanding you need, and make the whole process run a smoothly as possible.
There are several reasons why your application for a buy to let mortgage application could be rejected. Here are some of the more common ones:
A mortgage broker can prove to be invaluable through the process, looking at your personal circumstances and why you want to buy property, looking at the costs associated, all the way through to sourcing the best mortgage deal for you and submitting your mortgage application.
We work alongside our buy to let clients, to secure the right mortgage deals. We have worked with numerous clients over the past 15 years, where they grown from one unit to sizeable portfolios.
Our success in this sector comes from understanding and structuring finance correctly.
Our brokers will discuss and get an understanding your current and future plans in property and advise you accordingly.
We have access to all the major mortgage lenders as well as niche, specialist lenders - allowing us to compare mortgage deals across the market and ensuring our advice meets our clients needs and requirements.
Dhavi Limited (t/a London FS), is directly authorised and regulated by the Financial Conduct Authority (FCA). Firm reference number 628993. Dhavi Limited is registered in England No. 7301914
Registered Office: 7 Bell Yard, London, WC2A 2JR. Tel: 020 8427 5057. Fax: 020 7160 5331
* Some forms of buy to let, secured loans, commercial finance, bridging finance, overseas or offshore mortgages and will writing are not regulated by the Financial Conduct Authority (FCA), or Prudential Regulation Authority.
Your initial mortgage consultation is obligation free. We charge an administration fee for processing each mortgage contract and our fees only apply when you decide to proceed with an application.
For standard residential mortgage contracts the typical fee of up to 1% of the mortgage amount applies of which £500 is payable on application with the balance payable on offer .
For buy-to-let mortgages a typical fee of up to 1% of the mortgage amount applies of which £500 is payable on application with the balance payable on offer.
For offshore and commercial mortgages a typical fee of 1% of the mortgage amount applies of which £1000 is payable on application with the balance payable on offer.
For impaired credit lending the typical fee is 1% of the mortgage loan applies of which £500 is payable on application with the balance payable on offer.
The overall cost for comparison is 5.5% APR. The actual rate will depend on your circumstances. Ask for a personalised illustration. The advice and/or guidance contained within this website is subject to UK regulatory regime and therefore is restricted to consumers based in the UK.
Purchasing an investment property can be a great decision. Allowing you to make a secondary income, providing a pension income when you retire or even as inheritance to your children. However, getting the right buy-to-let mortgage is imperative.
We work alongside our landlord clients, to secure you the right lending and best possible rates. We have worked with numerous clients over the past 15 years, where they grown from one unit to sizeable portfolios.
Our success in this sector comes from understanding and structuring your finance correctly. Our brokers will sit with you to understand your current and future plans in property and advise you on making the right decisions now.
We also help with small portfolio re-structuring, advice on yields and onshore and offshore portfolios.
To discuss your mortgage requirements in the strictest confidence please get in touch using the below form.