WHY IS THE RIGHT BUY-TO-LET MORTGAGE ESSENTIAL?

Whether you are investing in Buy-to-Let properties for the rental income or for the potential capital appreciation, choosing the right mortgage is essential. Not least because it is fraudulent to either let a property while only paying for a residential mortgage, or to move into a property that you have told the lender you are renting out.

If you’re not sure how Buy-to-Let mortgages differ from residential mortgages or need more advice on how to arrange a Buy-to-Let mortgage please contact us and we will assist you all the way.

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BUY-TO-LET MORTGAGE ADVISERS

At Varsity Finance we have access to the whole of market and our specialist advisers are highly experienced in finding the most suitable mortgage product suited to your personal situations. With the recent changes to Buy-to-Let and Let-to-Buy, it’s never been more essential to get the right advice.

ARE BUY-TO-LET MORTGAGE INTEREST RATES DIFFERENT FROM RESIDENTIAL RATES?

Buy-to-let mortgages often have slightly higher fees and interest rates associated with them compared to residential mortgages to reflect the higher risk for a lender. The minimum deposit for a Buy-to-Let mortgages also tends to be higher at 25% compared to 5-10% for normal residential mortgages.

WHAT IS THE CRITERIA FOR A BUY-TO-LET MORTGAGE?

Buy-to-let mortgage lenders typically assess an applicant on the following criteria: age, borrower status, location of residence and credit history.

 

Age – The accepted minimum age is usually 21 or 25, but some lenders’ minimum age is 18. Maximum age can differ between lenders, with most lending up to age 75 but some up to age 85. There are a few lenders that have no maximum age at all under the right circumstances.

 

Borrower status – You can be a first-time buyer, first time landlord, experienced landlord or professional landlord. Which lender you use depends on individual lenders’ preferences, but typically first-time buyers will find fewer lenders agreeing to a buy-to-let mortgage. Not all lenders accept large portfolios either.

 

Location of residence – Buy-to-Let lenders will normally require borrowers to reside in the UK as they have no mandate to lend to applicants resident overseas.  Some lenders accept expat applicants, and their underwriters may apply slightly stricter overall criteria. requirements.

 

Credit history -Poor credit history can make it particularly difficult to obtain a buy-to-let mortgage, but there are some lenders that are more flexible than others.

HOW MANY BUY-TO-LET MORTGAGES CAN I HAVE?

Different lenders have differing limits to the number of buy-to-let mortgages you can take out with them, and some also set limits based upon your entire portfolio including properties mortgaged with other lenders. Many high-street lenders can the number of buy-to-let properties at 3 to 5, however there are lenders available that work exclusively with portfolio landlords (those owning 4+ buy-to-let properties).

REMORTGAGES AND ADVICE

COULD YOU TAKE ADVANTAGE OF NEW RATES?

The decision to remortgage is one that should never be taken lightly. If you are looking to remortgage and are on the search for better rates then here are some of the steps to be aware of.

REMORTGAGING INFORMATION & CONSIDERATIONS

If you are considering remortgaging, make sure to contact our independent advisers who will consider all your circumstances as well as available deals before offering impartial advice about which remortgage options are right for you.

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In today’s competitive market, many borrowers choose to remortgage (switch their current mortgage to a new lender) or undertake a product transfer (take a new deal from their existing lender) every few years in order to take advantage of the new rates and products on offer or to fit changing life circumstances. Both options should be considered several months before any existing deal finishes.

 

SOME BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY

Your home or property may be repossessed if you do not keep up repayments on your mortgage.