Buy to Let
Advantageous mortgage rates and low performance by conventional savings and investment products mean that property / buy-to-let investments could be a better investment for the future.
- Rent Potential - The decision any mortgage lender will make as to whether or not a mortgage will be offered / how much money they will lend is usually based on the rent you will earn as well as your income. In some cases your income is not ever considered. Some lenders will calculate the rental income on 125% - 130% of the monthly mortgage payment. We now have access to mortgage providers who will give a rental calculation of 100% of your mortgage payment.
- Interest Rate - Buy to let mortgages typically have slightly higher interest rates than residential mortgages.
- Larger Deposit - Typically a minimum of 15% - 20%.
- Repayment Method - Is typically on interest only but you can have a buy to let mortgage on Capital Repayment.
- Capital Growth - In other words, are you looking to make a profit month on month or are you looking to make a profit through increased equity from the second property as it increase in value over time? The decision may affect the type of property you purchase.
- Can I have more than one Buy to Let mortgage? Yes - you can take out multiple mortgages with different lenders - but in most cases, it is only possible to have one loan per property. This is because the loan is secured on the title of the property - and each lender would want to have first claim - should any thing go wrong!
- Can I buy more than one property? Yes you can! In fact most lenders will allow you to buy up to 4 or 5 properties. This also means that they are willing to lend sums of the order of £500,000 or even £2m.
- Can we get a Buy to Let mortgage in joint names? Yes - you can.
- Who can set up a Buy to Let mortgage - individual or company? Both!
- Can I get a Buy to Let mortgage in the name of a Limited Company? Yes - although, often lenders expect that the Limited Company is formed for the sole purpose of purchasing, owning and managing properties.
Give Park View Mortgages Limited a ring on 0161 773 1069 or email us with an online enquiry.
Buy to let mortgages are not regulated by the Financial Services Authority