Clydesdale Buy To Let Mortgages
Our Buy to Let Mortgage Service
Why choose us?
We can provide you with a first class service if you are looking for buy to let mortgage advice.
Special features of what we offer include:
- Whole of market broker - we deal with Clydesdale & most UK buy to let lenders
- Access to leading buy to let market rates
- Access to exclusive buy to let mortgage deals not available on the high street
- Expert help whether you are a first time investor or full time landlord
- We have lenders who will take into account previous defaults and missed payments
- Complex buy to let or have a portfolio of 5+ properties? - speak to us
To investigate your buy to let mortgage options including Clydesdale call our specialist team on 0117 403 4474 or fill in our call back form.
Clydesdale Buy to Let Mortgages
If you wish to invest in property on a buy to let basis you may be wondering what Clydesdale buy to let mortgages can offer you. Clydesdale buy to let mortgages present a range of plans with both fixed rate and offset options.
Clydesdale buy to let mortgages
- At least one of the applicants must have a basic income of at least £30,000 not including rental income. Or £75,000 if the applicant has four or more buy to lets
- Applicants can have no more than 8 buy to lets, Clydesdale BTL mortgages are not available to ‘professional landlords’ .Therefore, your gross rental income cannot be greater than your non-property income i.e. your employment.
- Clydesdale BTL mortgages cannot be used for houses in multiple occupation (HMOs).
- Clydesdale will not accept applications from landlords who show evidence of poor credit history, including CCJs, bankruptcies or are subject to Individual Voluntary Arrangements.
Whether you are looking for a residential or commercial buy to let mortgage or if you are employed or self employed, you may benefit from speaking to an independent mortgage adviser before applying for a mortgage.
Aside from having specialist mortgage knowledge, professional intermediaries have access to a range of providers off of the high street who cannot be directly contacted by applicants.
Changes to buy to let mortgage regulations
If you intend to apply to Clyndesdale Bank for a buy to let mortgage, you should review the changes to the buy to let mortgage regulations. The changes to the regulations have altered the way lenders consider applications for buy to let mortgages from landlords.
From 2017, lenders require a high rental coverage ratio than in previous years. Prior to the regulation changes, landlords only required a rental coverage ratio of 125%. Lenders now require landlords to have a rental coverage ratio of 145%.
In addition to the higher rental coverage ratio, lenders will implement an income stress test to review the landlord’s income. The income stress test will check the landlord’s ability to afford the mortgage payments. In order to satisfy the stress test, landlords need to demonstrate that they can afford mortgage repayments in the event that the interest rate increases to 5.5%.
Lenders will now review the landlord’s entire portfolio to ensure that all of the landlord’s properties are profitable. If a landlord has one or more properties that are not profitable, then a lender will not provide the buy to let mortgage. Lenders will no longer look at a property in isolation and as such landlords cannot spread equity across their portfolios.
Types of mortgage
When looking for a mortgage it is a wise idea to shop around thoroughly to compare the market and find what is available to you, remember that there are many providers of buy to let mortgages. You can use the buy to let mortgage comparison calculator on this website to view a range of different buy to let mortgages that might be available to you.
While looking for the right buy to let plan for you, you should consider what kind of mortgage would suit your requirements best:
- Interest-only – With an interest only mortgage, you may find you have cheaper monthly payments, but this is because you are only making payments on the interest on your loan value. At the end of the mortgage term you are required to pay back in full the original sum you borrowed. As a result, lenders tend to have stricter lending requirements for this type of mortgage. You will also need to provide an investment or savings plan on how you are intending on raising the repayment capital over the term.
- Repayment – Your monthly mortgage charge contributes to repay your mortgage as well as paying the interest accumulation. Meaning by the end of the loan term you will have completely repaid the amount you borrowed, providing you kept up with your repayments.
Before you take out a buy to let mortgage you should also decide what kind of interest accumulation you would prefer:
- Fixed Rate – With a BTL Fixed Rate mortgage your interest is set at a fixed rate so your payments will be consistent throughout the introductory period. With most plans when your introductory period expires you will be put on the lenders Standard Variable Rate.
- Tracker – Buy to let Tracker mortgages are linked to the Bank of England’s base interest rate. This means that if the Bank of England either raises or lowers its base rate, then the interest you pay on your mortgage will also change to reflect this.
Call us 0n 0117 403 4474 for buy to let mortgage advice or complete our callback form.