Buy To Let Mortgages

You will only be quoted the current best Buy to Let mortgages rates. Using our specialist remortgage calculator, we can access every Buy to Let mortgage lender in the UK. This guarantees that you are offered the cheapest Buy to Let mortgages, regardless of your circumstances and the type of property to be mortgaged.

The majority of Buy to Let or Let to Buy Mortgages are calculated on primarily the rental achievable on the property. In a nut shell, the majority of lenders will expect you to realistically achieve a rental income 25% more than you pay out on your mortgage. However, there are lenders who will use alternative ways of calculating the mortgage and ultimately there are lenders who periodically bring out Buy to Let mortgages which do not take account of rental income.

The most competitive Buy to Let Mortgages are below 80% Loan To Value (LTV). Most purchases and remortgages are calculated on 85% LTV and there is a large choice of lenders and the interest rates are competitive. Within the last few months we have seen increasing numbers of 90% LTV Buy to Let Mortgages available. However, you will find the interest rate a little higher but still competitive.

Typical Buy to Let Cases

• Multi occupancy & student lets
• 1st Buy to Let Investment
• Purchasing a portfolio of properties
• Builder's gifted deposit 5%, 10% or 15%
• Vendors gifted deposit
• Purchase at auction with a bridge facility
• Portable Buy to Let mortgages
• Buy to Let mortgages without redemption penalties
• Mortgages for rentals that will not stack up

Categorically no. The maximum loan to value is currently 90% LTV, however, many lenders will accept a 5% Gifted Deposit from the seller or buyer.

Yes. Many lenders will accept a 5% Builder's Gifted Deposit, some will accept a 10% Builder's Gifted Deposit on a 85% LTV mortgage. In other words, as the investor, you are required to pay 5% of the deposit yourself. Finally, periodically we will have a very limited number of lenders who will accept a 15% Builder's Gifted Deposit. The interest rates are usually a little higher but these Mortgages allow investors to build portfolios very quickly.

Letting your current property and releasing some of the equity to buy another is very popular. There are some very competitive Let to Buy interest rates available, most work on a maximum of 85% LTV. let to Buy mortgages are no different from standard mortgages in so far that you have a choice of fixed rate, trackers or discounted and they are usually completed in 4 to 6 weeks.

There is a large choice, and the criteria for the lender is similar to Purchasing, with up to 90% LTV. But the most competitive Buy to Let Remortgage rates will be found below 80% LTV. Many investors will remortgage regularly (every 2 years) to release equity from the current property to fund further purchases.

This is a short term loan. Its most popular uses are to purchase at auction or distress purchases requiring very quick completions. Bridging loans can be used to purchase any property with a substantial discount, i.e. 20% below the market value then remortgage back up to 85% LTV, therefore releasing 5% of equity and requiring no deposit from the investor. If you require further information on Bridging Loans, please go to www.123investmentfinance.co.uk or click here

Many mainstream Buy to Let lenders will accept a limited number of Poor Credit issues, other more specialist lenders will accept a great deal more. Please keep in mind that with Buy to Let properties, they are small business. A Lender expects a business to support itself and therefore the lenders are far more interested in the property and the income rather than focusing on the investor. Inevitably your are likely to pay a little more interest.

Many investors are in a hurry to develop a portfolio of property rapidly, but quite often with a limted budget. The smart investors utilise the financial products available to the full and use their negotiating skills to construct purchases which minimize the use of their own cash.

Example 1. Purchase with a large discount!

If you are purchasing privately or from a builder or at an auction and you are purchasing at a price 18% or more below the true market value, the lenders will still expect you to have 10% or 15% of your own money as a deposit.

Solution - Purchase using a bridging loan at 18% discount and immediatly remortgage leaving 15% equity in the property. The 3% difference should cover your bridge and remortgage costs, and still leave you with spare cash on completion.

Example 2. Purchasing Discounted New Build!

If the builder is offering for example 10% or 15% discount, this is attractive but still leaves you with a 15% deposit to find.

Solution - If the incentive offered is a builders 15% Gifted Deposit, then the investor will not be required to fund any of the deposit.