Buy to Let Mortgage Tips
A buy to let mortgage is a loan for someone who purchases a residential property with a view to renting it out as an investment.
Mortgage lenders view Buy to Let as a greater financial risk because immediate vacant possession is not always guaranteed.
Therefore mortgage lenders tend to:
• Ask for bigger deposits, usually 15-25%
• Charge a higher rate of interest
• Require the rental income to be greater than the interest element of the monthly payment.
• Usually charge higher mortgage arrangement fees or slightly higher rates
• Require a minimum income, usually £25k per annum
• Require the applicant to be a homeowner
A few mortgage lenders don’t require a minimum income, speak to one of our mortgage advisers and we will go through your options. Mortgage lenders will view applications on a case to case basis.
Buy to Let mortgage tips
• Research the market
• Find the right area
• Think about your target tenant
• Go for rental yield
• Calculate the maths including ongoing maintenance and tax
• If First Time Landlord, use a reputable letting agent to begin with
• Property has to be suitable for rent on completion of mortgage application
• Have sufficient funds to cover void periods
• Speak to a whole of market mortgage broker
Is Manchester the best place for a Buy to Let?
For further info, please contact us.
We have access to the whole market and based in Manchester city centre.
