Buy-to-let mortgage or remortgage
A buy-to-let mortgage (sometimes called a landlord mortgage) is a secured loan which has been designed for those who want to invest in a property to rent out to others, either as a short-term holiday let or residential lease for tenants or students.
The buy to let mortgage marketplace is competitive and expert advice is vital. Buy-to-let mortgage interest rates and deals can differ to those for a home you plan to live in and are often more costly. Lenders may consider that these types of mortgages pose a higher risk or treat them as business transactions and require a higher deposit for a lower loan to value rate. You should also be aware of the tax implications associated with property investment, and Stamp Duty Rates are higher.
Whether buying your first Buy to Let property, adding to your property portfolio or remortgaging, our specialist knowledge will help you find the best buy-to-let mortgage for you and your personal circumstances.
Some buy to let mortgages are not regulated by the Financial Conduct Authority.
Frequently Asked Questions
Buy-to-let mortgages were created specifically for those looking to invest in property to create a rental income stream and potential long-term capital appreciation. They tend to revolve around three crucial factors, the deposit, loan to value ratio and the interest cover ratio (ICR). You may be able to obtain a buy-to-let mortgage with a deposit as low as 20%, although many of the more attractive rates start with a 40% deposit.
The ICR is the rate by which rental income on the property will need to exceed mortgage payments. The lowest ICR tends to be around 125%, but it can be as high as 145% and above. For example, with a 125% ICR, you must achieve £125 rental income per hundred pounds of mortgage repayments. This ensures that buy-to-let mortgage lenders have a degree of cover between mortgage payments and rental income streams. There are also the traditional technicalities and legal issues associated with a standard property purchase.
Want expert Buy-to-let mortgage advice?
Why work with us?
At Stan Sherlock Associates, arranging a buy to let mortgage or remortgage is not a one-off transaction. We aim to build long term relationships with our clients and provide you with an advice service over the lifetime of your mortgage or mortgages which ensures you always have the right deal for your situation.
Although based in Carlisle, our clients come from much further afield. We regularly work with clients from across Cumbria (including Kendal, Keswick, Penrith, Whitehaven and everywhere in between), the Scottish Borders, and North East England. Many of our mortgage advice services can be provided by phone and email but our mortgage advisers are always happy to meet you face to face.
