Buy To Let

With the current financial market, becoming a landlord has become an increasingly popular investment option. Buy to let mortgages are a popular mortgage option for those wishing to invest in residential rental property. When buying a property for the purpose of letting, the mortgage is one of the most important things to consider. Although the perception is that buy to let mortgages are expensive, this isn’t necessarily correct. There are many lenders who offer competitive rates, which in many cases are similar to the rates offered on a residential mortgage, however you will have to put down a bigger deposit – usually a minimum of 25%. Landlords also have a choice between interest only and repayment mortgages. By using Clear Thinking, you will get a specialist local financial adviser to guide you through the options available to you, and make the best decision for you.

Buy to let mortgages do differ in several ways from standard mortgages. When lenders are considering approving a buy to let loan, they generally base their decision on the likely rental income from the property and not necessarily the applicants’ income. A prospective landlord needs to be aware that the rental income typically needed is 125% of the mortgage repayment, although this can vary from 100% rental income up to 130%. You also need to be aware of the risks when taking out a buy to let mortgage – such as the property being empty for a period of time, or unreliable tenants. Your mortgage advisor will take this into account when advising a mortgage and deciding what is best for you. These risks are reflected in the strict conditions you have to meet when taking out a buy to let mortgage. When you discuss this with your mortgage advisor, all of this will be taken in to account when we advise what is best for you – meaning you do not have to worry.

With our expertise in this market, we can help you find the best product to suit your requirements. With our extensive access to thousands of mortgages and our knowledge of lenders’ criteria, we can find you the right buy-to-let mortgage.

Most Buy-to-let mortgages are NOT regulated by the Financial Conduct Authority.