Buy To Let Mortgages
For property investors who want to let out their residential property for a long term investment, a Buy To Let Mortgage is required. Most lenders will assess Buy To Let Mortgages for a prospective borrower based on the monthly rental income of the property, rather than depend on the borrowers personal income alone. Rental income should be greater than the mortgage interest payment by a set multiplier known as a ‘rental stress test’ typically around 125% – 130% of the interest only mortgage payment. This does vary between lenders and even between mortgage products from the same lender.
We can provide Buy To Let Mortgages for property investors who may struggle to qualify for mortgage products offered by high street lenders, or where these mainstream Buy to let lenders cannot offer a product to satisfy the needs of the more complex Buy To Let cases. Most single tenant BTL Mortgages are available up to 85% Loan To Value (LTV).
Buy To Let properties for the purposes of lending tends to fall into three distinct categories. Single tenant Buy to let, Multi tenant BTL (non-licensed HMO) , and finally Licensed HMO Buy-to-let. It is worth pointing out there tends to be a small amount of overlap between the latter two categories, as different mortgage lenders classify what they consider to be a HMO (House of Multiple Occupation) or standard single occupant Buy to Let.
Interest only buy to let mortgage
All lenders will offer interest only options and under current mortgage criteria the borrower is not required to have a repayment vehicle such as an endowment policy or ISA to repay the mortgage after the mortgage term ends.
The maximum term for a interest only Buy to let mortgage will vary from lender to lender, the maximum typically is 35 years or borrower age 90.
Buy To Let Mortgage Quote
In order to provide our clients with the best buy to let mortgage quote from a selection of suitable mortgage products we will take into consideration a range of factors that will affect the mortgage selection, these factors will include:
- Property location – Some lenders only lend in certain areas of the UK so the location of your property may affect which lenders’ products we can include in our selection for you.
- Date of purchase – For property recently purchased and where the borrower is requiring a remortgage within the first 6 months there are some constraints limiting the maximum refinance amount a lender may offer.
- Renovation or improvement works recently carried out: If you have carried out improvement works to your property, which has increased the property value.
- Value or Purchase price – Most lenders have a minimum and maximum property value and this varies between lenders. We can arrange mortgages on executive buy-to-let properties within London valued at £1million and over.
- How many other properties owned – To qualify for some mortgage products the applicant may need to own other BTL property.
- Applicants personal income: While the Buy To Let mortgage is not dependent upon personal earnings some lenders do have minimum personal income requirements. This information will enable us to provide an accurate selection of mortgage products to offer you.
- Applicants current age: Minimum age for most lenders is typically 21 (sometimes 18), and the maximum is age 90.
For an individual no-obligation Buy To Let Mortgage Quote fill out our online form below and we will contact you to discuss your requirements