Buy to Let
The UK market for Buy to Let mortgages continues to grow as more and more people are looking to use property as an investment. Lending in this market is quite fluid as property is perceived by many to deliver a good return in terms of both growth in equity and regular income.
There are a wide selection of products available from a wide selection of lenders depending on factors such as the client’s experience as well as the amount of deposit available and rental yield attainable.
Buy to Let Remortgages
Remortgaging your Buy to Let property or restructuring your investment property portfolio is essential for the day to day management of your investments. We can take care of your investment mortgages. With our knowledge of this market sector we can provide the most up to date rates and offers in order to maximise your returns and provide a level of security in changing markets.
Basic Buy to Let Guidelines
Lenders will be looking for larger deposits than for a standard residential mortgage this is typically 25% of the purchase price and can be more where house prices are high in relation to the rents achieved (London areas). This gives the lender greater security on the property that the money is being lent against. There are many lenders with different criteria such as property values, age and experience of borrower , rental yield of property, type of property and income of borrower, some lenders do not have a minimum income requirement and others have £25,000 as a barrier to entry where this income cannot be derived from property. Because of this it is really important to get your financial adviser to have a really clear idea of your position.
All borrowers will be credit searched by the lender and knowing your credit score and what your report will say is also vitally important.
Being able to obtain the right rent is crucial to obtaining a mortgage as the lenders will require the rental to exceed the mortgage payments by 25-45% minimum, more in certain areas in light of March 2016 changes to how rental property held by an individual is taxed. We can help you understand these changes and the potential impact on your portfolio from 2017-2021 as the changes are phased in. We can also look at options for purchasing new investment properties.
Making sure the property attains a standard that is fit for renting with no major structural faults will be an essential part of the selection criteria. We can do the calculations for you before you make an offer to make sure that the rental yield numbers work to make your purchase a viable option to pursue.
Who will benefit from a Buy to Let Mortgage?
Anyone who is buying a property in either their own name or through a limited company and need funds to complete on the purchase. The acquisition must be with the sole intention of renting that property out. It cannot be used as a residence or rented out to a family member on a consumer buy to let mortgage.
What we offer:
We will support you with a decision in principle and then proceed to get the full mortgage offer, collating all the information and satisfying the lender. We can also help with suitable conveyancers that are acceptable to the lenders and lease with them to get matters progressing quickly and efficiently. We will help run calculations on interest rates and amounts as you consider making offers on properties you have viewed. We can also put you in touch with specialists to support your property business.
Why choose Fortuna for your Buy to Let mortgage?
We are independent whole of market financial advisers who have working relationships with the lenders that will enable us to source the best rates and get your loan offered quickly.
What to do now
Call 01992 503410 to speak with one offer advisers and arrange a complimentary appointment to discuss your requirements and budget.