Nationwide Buy To Let Mortgages
Nationwide Buy To Let Mortgages Service
Why choose us?
Fair Mortgages 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 over 60 UK lenders including Nationwide
- Top Rates - Access to leading buy to let market rates
- Exclusives - Access to exclusive buy to let mortgage deals not available on the high street
- Our Buy To Let Expertise - Expert help whether you are a first time investor or experienced full time landlord
- Credit Issues? - We have lenders who will take into account previous defaults and missed payments
- Experienced Buy To Let Investor? - Have a complex buy to let or have a portfolio of 5+ properties? - speak to us
To investigate your buy to let mortgage options, call our specialist team on 0117 403 4474 or fill in our call back form.
Changes to the Buy to Let Mortgage Market
When applying for a buy to let mortgage from Nationwide it is important to be aware of the changes to the buy to let mortgage regulations. The changes have altered the way lenders consider and review buy to let mortgage applications.
From 2017, lenders will implement a strict income stress test. Landlords’ income will be reviewed and put under a stress test to ensure they can afford mortgage payments. In order to successfully secure a buy to let mortgage, landlords will have to satisfy lenders that they can afford mortgage payments in the event that interest rates increase to 5.5%.
In addition to the stress test, lenders will require a higher rental coverage ratio than in previous years. Prior to 2017, landlords only needed a rental coverage ratio of 125%. Nowadays, landlords need a rental coverage ratio of at least 145% for standard buy to lets or up to 170% for houses in multiple occupation.
The changes to the regulations could heavily affect landlords with multiple properties. This is because lenders will not provide landlords with a buy to let mortgage if one or more of their properties are not profitable. It should be noted that landlords can no longer spread equity across their entire portfolio, which means if a landlord has one or more properties that do not provide a positive return, they cannot prop it up with profit from another property in their portfolio.
Nationwide Buy To Let Mortgages
If you’re looking for the right buy to let mortgage, you may be wondering what Nationwide can offer you. There is not currently a product known as a ‘Nationwide buy to let mortgage’, however they can offer buy to let mortgages through their specialist lender called The Mortgage Works. Buy to let mortgages from The Mortgage Works are only available via a professional independent intermediary such as ourselves.
Buy to let mortgages from The Mortgages Works for first time landlords feature
- Maximum loan to value of 75%
- Minimum term of 5 years
- Maximum term of 35 years
- Minimum age of 21 at application
- Maximum age of 70 at application
- Maximum loan size of £500,000 (unless otherwise started)
- Must be owner occupied
- The Mortgage Works will consider applications from employed, self employed and retired applicants.
Before you take out a buy to let mortgage
Buy to let mortgages like most financial products, such as credit cards or current accounts, can vary greatly between lenders and plans. For this reason, it is wise to research all of the different options before you lock yourself into a plan.
Consulting an independent mortgage broker could assist you in finding the right buy to let for your set of circumstances. Professional intermediaries have access to specialist lenders who cannot be directly approached for quotes, including but not limited to The Mortgage Works.
If you are comparing different mortgages remember to factor in any arrangement fees and other costs, if the mortgage with the lowest APR has high set up fees it could actually cost you more than some other plans available.
With buy to let mortgages you may have a choice between an interest only or repayment mortgage:
- Interest Only – With this type of mortgage your monthly payment will only cover the interest that accumulates on the loan. At the end of your mortgage term you would be required to repay the entirety of the original amount you borrowed. As a result, most lenders require you to provide a detailed financial plan of how you intend to make that repayment.
- Capital Repayment – With a repayment plan your monthly payment will cover more than just the interest that accumulates on your mortgage, which means by the end of its term you will have completely repaid the sum you borrowed. Some plans may allow you to make overpayments when you can afford to so, allowing you to pay off your mortgage even quicker.
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 Fixed Rate mortgage your interest payments are the same throughout the course of the deal, so you know how much you will be paying for the whole introductory period. After this you will usually be put onto the lender's Standard Variable Rate (SVR)
- Tracker – 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 the interest you pay on your mortgage will also change to reflect this.
To find out if a buy to let mortgage is a suitable best deal for you, see the table and phone us for quotes, or compare Nationwide with different buy to let mortgage suppliers.
To compare buy to let deals with different leading mortgage rates and get the most effective deals for you, speak to our mortgage team.
We offer a free, whole of market, independent mortgage comparison service to help you find the best deal for you.
Speak to our specialist team on 0117 403 4474 to help you find the right mortgage option for you or request a callback.