Buy-to-Let Mortgages
Investing in a buy-to-let property can be a great way for contractors to enhance their income. Many contractors are opting to become landlords to secure a steady income stream for their retirement.
It is crucial to use a qualified Mortgage Adviser to determine the most suitable mortgage for you. We will carefully assess your circumstances and confidently recommend the best mortgage products available, drawing from our wide range of lenders, each with distinct lending criteria.
Some important points to understand about buy-to-let mortgages:
If you don't have enough cash to buy a property outright, you'll need to apply for a buy-to-let mortgage after finding a suitable property and having your offer accepted.
Interest-only: Most buy-to-let mortgages work on an interest-only basis. This means you'll only have to pay the interest on your mortgage loan each month, and the loan itself will be repaid at the end of the mortgage term. Typically, landlords sell the property to repay the loan, expecting the property's value to have increased, resulting in a profit.
Larger deposit: Because buy-to-let mortgages are seen as riskier, lenders usually require a larger deposit compared to residential mortgages. The minimum deposit is usually 20% of the property's value, but it can be as high as 40%.
Consideration of rental income: The amount you can borrow for a buy-to-let mortgage is primarily determined by the expected rental income from the property. Lenders typically require the monthly rental payments to cover at least 125-145% of your monthly mortgage repayments, also known as the "interest cover ratio." This allows for flexibility in the event of a tenant's failure to pay rent or the property remaining vacant for some time.
If you want to know more about a buy-to-let mortgage, don’t hesitate to get in touch for expert advice.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.
Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority
This firm charges a fee of up to £795 for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
