Buy To Rent Mortgages
Our Mortgage Service for Buy To Rent
Our buy to rent mortgage service offers:
- Whole of market service - we work with all major buy to rent lenders
- Access to leading market buy to rent mortgage rates
- Access to exclusive mortgage deals not available on high street
- Fast turnaround - speak to us today if you need to move quickly
- We have lenders who will take into account previous credit issues
To investigate your mortgage options call our specialist mortgage team on 0117 403 4474 or fill in our callback request form.
Buy To Rent Options
Whether you already have an existing portfolio of multiple rental properties or you are looking to get a buy to let mortgage for your very first by to let mortgage, understanding buy to rent mortgages and finding the best plan for your specific needs is important.
Although specific requirements for buy to let mortgages do vary between lenders, the changes to how the buy to let mortgage market has made it potentially more difficult to access the finance landlords require.
From 2017, lenders may now consider the following when they assess your suitability for a buy to rent mortgage :
- Whether you already own a property - Some lenders may not even offer buy to let opportunities to non-homeowners.
- How much you earn – If you are not already a homeowner you may find it difficult to find a suitable buy to let mortgage if your current earnings total less than £25,000 a year. Lenders will review whether you can afford the mortgage payments in the event that the interest rates increase to 5.5%.
- Your age – Many lenders are reluctant to offer mortgages to borrowers who will be over 70 years old by time the mortgage term finishes, others are happy to accept applications from people aged over 70 as long as they will be less than 85 when the loan is set to be repaid.
- Rental coverage ratio - It is generally a requirement that the rental coverage ratio is at least 145% for a standard buy to let, and 175% for a house in multiple occupancy. In addition, rental coverage ratio must be based on a professional valuation and cannot be as a result of an informal estimate.
- A profitable portfolio - If you have multiple buy to let properties, unlike with previous regulations where profitable buy to lets could prop up properties that were not profitable, a lender will require a review of your entire portfolio to ensure that every property provides positive returns.
You will find with buy to rent mortgages that many lenders will require you to pay higher arrangement fees and interest rates you are offered may be higher than you would expect on a traditional mortgage. The loan to value ratio’s of buy to let mortgages also means you will have to put down a larger deposit.
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. After all once you do commit to one you are most likely going to need to make payments for a number of years.
When 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.
Although many of the buy to let mortgage options available are interest only if you do opt for a repayment mortgage you may wish to consider what type of repayments you wish to make on it.
Different types of mortgage for buy to rent
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 lenders 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.
If you want to find out more about buy to rent mortgages you may find getting in touch with an independent mortgage advisor useful. You can fill in the online enquiry form on this website to request call back from a Fair Mortgages Advisor who can provide you with a free initial conversation about different mortgages.
Call us today on 0117 403 4474 or request a callback.