Buy to Let
When you are in the position to be able to buy a property to rent out, you will need to start looking into buy to let mortgages. They are not the same as the conventional mortgages out there that you use to buy your own house, which means our research is important here. For a buy to let mortgage, you’ll need a larger deposit and you will face higher fees with a higher rate of interest.
Lenders calculate what you can borrow using a Rental Income Ratio calculation and all the lenders have different calculations. This is where the advisers at 1st Mortgage Services can really save you time, stress and hassle by doing all this for you.
1st Mortgage Services concentrates on finding the most suitable deals on buy to let mortgages for you, so that you can get the right information for your buy to let needs.
Buy to let mortgages are usually offered on an interest-only basis, meaning that the total amount you’ve borrowed will remain outstanding until the end of the mortgage term. The lender will then require you to repay the outstanding mortgage in full at the end of the term. Of course, a Capital & Interest repayment mortgage on buy to lets are available – however, lenders differ on their view on this, as generally there has to be a percentage profit between the monthly payment and the rental income received.
All mortgages have a loan to value figure – for a buy to let mortgage, you may need a deposit of 20% or more, depending on your current circumstances. The bigger the deposit you can offer, the lower the monthly repayments you will pay.
As a landlord, don’t forget to factor in the fees you will need to pay should you rent your property out straight away. There is tax to consider on your rental income as well as landlord’s insurance, rent insurance and letting agent fees. You should also allow for a contingency to be saved each month to cover any rental voids that could occur in the future.
1st Mortgage Services can help you to find the most suitable buy to let deal for your budget, so call us today on 01845 501830 for more information.
What our clients say
Customer service is everything for 1st Mortgage Services – selecting a mortgage lender and knowing which is the right product for you can be a complex and time-consuming exercise. Julie and her team make this easy – they offer sound, reliable and friendly advice, taking the headache out of this important life decision. The team carry out their work over the phone, via email and by post – plus home visits, at times to suit the client, are also on offer. They offer a wealth of experience in the mortgage industry – their knowledge and expertise plus their openness and ability to convey understanding of the product, is very reassuring
Purchaser 2018, Northallerton
Given my experience, I feel that the company/individual operate in such a way that treating customers fairly is central to their culture. Julie was always on hand to answer my queries and advise me of the best way forward and sorting everything out for me, as I needed it, to a tight timescale. I could not have asked for a better service.
Purchaser 2018, Whitby
Ready to talk through your mortgage?
We charge a combination of an initial fee of £250 on application and retain the commission received from the lender. Think carefully before securing other debts against your home. Your property may be repossessed if you do not keep up repayments on your mortgage.