Buy to Let Mortgages...
Buy to Let Mortgages are mortgages specifically designed for people who want to invest in the property market by purchasing one or more houses and letting them out to tenants. The Owner is then able to benefit from any appreciation in the capital value of the house itself. They are also likely to be able to maintain the property and meet much of the loan repayment from the revenue realised by letting. The buy to let phenomenon has driven house prices higher over the last few years while making a broader section of rental accommodation available.
Buy to Let Mortgages differ from what came before by specifically allowing the rental revenue to be considered as income when considering the ability of the buyer to meet the ongoing mortgage payments. Buy to Let mortgages are very similar to standard mortgages for property which the owner will inhabit. The percentage which the buy to let lender is willing to lend is likely to be restricted to 80% of the value of a property. The term of a buy-to-let mortgage is likely to be somewhere in the region of 5 to 45 years. Interest rates are also likely to be slightly higher than those which a standard mortgage agreement attracts.
When buying to let it is important to know the market in which you will be trying to let your property. It may be worth getting help from a letting agent who knows the area, what is in demand, what the likely pitfalls will be. By planning carefully and purchasing wisely you ought to get a property which requires little maintenance and is attractive to tenants. Avoiding void periods, i.e. time between tenants where you receive no rental income, will be your primary concern once you have purchased the house on a buy to let basis. While not inescapable, you are wise to do everything you can in advance to minimise the likely length of these periods. Insurance is now available to cover buy to let contingencies, your provider ought to be able to provide you with information.
BTL Mortgages with poor or no rental income
If you think there is insufficient rental income to cover increased borrowings on the property, then we have lenders who do not use any rental income calculation to restrict the level of borrowings. The mortgage is fully self certified on personal income and no rental assessment on valuation. This is ideal for BTL property purchase where the property is in need of some modernisation before the full rental value can be obtained. And Ideal for landlords remortgaging property to raise additional capital for further property purchase. Until now most lenders were unable to lend as rental income could not cover the loan amount due to 115% - 125% Rental cover rule.
At Neville Richards we've got all the answers for standard and non-standard properties alike - with a fast decision to ensure investment opportunities aren’t missed. We understand property investment and are confident we’ll be able to help whether you are entering this market for the first time or you are an experienced landlord with a portfolio of properties.
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THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. The FSA do not regulate some types of buy to let, commercial, overseas mortgages, and credit or loans not secured on property. Calls may be monitored and recorded for training / compliance purposes.
Neville Richards Financial Services Ltd is an appointed Representative of Intrinsic Mortgage Planning Ltd which is authorised and Regulated by the Financial Services Authority. Intrinsic Mortgage Planning Limited is entered on the FSA register (http://fsa.gov.uk/register/) under reference 440718.