Getting the right mortgage is vital to ensuring you will make a good return on your investment. Buy-to-let mortgages tend to be more expensive than residential loans because they pose a bigger risk to the lender. But there are still competitive rates out there. We can compare every finance solution available to you, as well as some exclusive deals. We can search the WHOLE UK MARKET to get you quotes from all the UK lenders, plus we will complete a cost benefit analyses to insure it is in your financial best interests.
Buy to let mortgages will usually require a higher deposit too, typically a minimum of 15% although if you have a deposit of 40% or more you’re likely to get better deals. If you haven't got a deposit, you could consider raising the deposit from your existing property, if you have enough equity in it to do so. This can be arranged as a further advance with your existing lender or you could look to remortgage with a new lender for a better deal altogether.
Another thing to consider is that most buy-to-let deals are on interest only basis so once the term is up you would need to sell the property to clear the loan or pay it off another way. Selling may suit you fine if you never intend to live in the house but if you don’t want to sell you will need to have a different repayment plan in place.
Is buying to let a good investment? With rental incomes increasing over recent years letting out a property can be a good way to bring in a regular income. To ensure you make a profit you should be looking to make a rental income of at least 125% of your mortgage repayments and the other costs of renting out a property. Finding the right buy to let mortgage you should speak to an adviser who will to talk through your buy to let options.
If you can't or do not want to sell your existing property, but you want or need to move, take a look at the Let to Buy mortgage. The advantage is that you are able to purchase a new property with the borrowing on the existing one effectively ignored. This method of financing the new purchase can be very useful whilst you are waiting to sell the existing property. It can also be set up in a way that allows you to reduce the borrowing without penalty, when you sell the first property.
For more specific help and to talk through you options, call our team of expert advisers today
Please note most buy-to-let mortgages are not regulated by the FCA.