Buy to Let
Becoming a buy to let landlord has been popular in recent times with demand for rental properties growing and rental incomes rising as a result. Many now see a buy to let as a good long term investment.
Lenders will assess the borrowing capacity not on your current income, but on the rental income that can be achieved. For example, the rental income must equal 145% of the mortgage interest payments at the specific pay rate which is typically 5%. This cover does vary from lender to lender so it is important to speak to an expert who understands all the small print.
Many lenders require applicants to have a minimum income, typically around £25,000, but this also varies from lender to lender so it is worthwhile speaking to an expert who can advise of the best buy to let lender for your circumstances.
Let to Buy
For many buyers, finding their new home is the easy part but selling their existing property is the more challenging issue. With demand for rental property at a high and rental incomes rising as a result, a growing number of people are looking to keep their existing property and become landlords themselves. This has given rise to the let to buy mortgage, which allows you to take a mortgage on your new home, whilst renting your existing home out to tenants.
If you have a certain amount of equity in your existing home, it is possible to take out a let to buy loan without a cash deposit. You would instead remortgage your existing home, freeing up an advance of funds, and use this advance as a deposit on the new property. This can be a complicated process so it is important to speak to an experienced mortgage professional.
Find out more
I am able to arrange buy to let and let to buy mortgages for every kind of client from first-time landlords starting out or with a very small portfolio, to more experienced landlords with a range of property.
To learn more about buy to let and let to buy mortgages and how I can help you, call me on 01425 291066 or click here for contact details.