Buy to Let Mortgages
Fish4Mortgage is located in Weston-super-Mare, Somerset & is the area’s leading Mortgage Broker with over 25 years of knowledge in the field. We specialise in many areas including re-mortgages, first time buyers, commercial mortgages, general insurance & secured loans. Explore our website to find out more information & also go ahead & use our Mortgage Calculator to see what deals are available to you.
What is a buy to let mortgage?
Buy to let mortgages are for landlords who buy property to rent it out. The rules around buy to let mortgages are similar to those around regular mortgages, but there are some key differences.
How Buy to Let Mortgages Work
Buy-to-let mortgages are a lot like ordinary mortgages, but with some key differences:
- The fees tend to be much higher.
- Interest rates on buy-to-let mortgages are usually higher.
- The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value (although it can vary between 20-40%).
- Most Buy to Let mortgages are interest-only. This means you don’t pay anything each month, but at the end of the mortgage term, you repay the capital in full.
- Most Buy to Let mortgage lending is not regulated by the Financial Conduct Authority (FCA). There are exceptions, for example, if you wish to let the property to a close family member (e.g. spouse, civil partner, child, grandparent, parent or sibling). These are often referred to as a consumer buy to let mortgages and are assessed according to the same strict affordability rules as a residential mortgage.
What our clients say
“I wanted to move but with no pension I wanted to keep my existing property and let it out the mortgage shop re-financed my existing property which gave me a deposit for my new property and allowed me to let out my existing property. Keeping my existing property has meant that I have been able to take advantage of the property market as I had no chain behind me and could move quickly. The mortgage shop advised me and kept me up to date every step of the way I cannot recommend them more highly.”
Can I get a Buy to Let mortgage?
You can get a buy to let mortgage if:
- you want to invest in houses or flats
- you can afford to take a risk: investing in property is risky, so you shouldn’t take out a buy to let mortgage if you can’t afford to take the risk.
- you already own your own home, whether outright or with an outstanding mortgage, you’ll struggle to get a buy to let mortgage
- you have a good credit record: and aren’t stretched too much on your other borrowings. E.g your existing mortgage and credit cards
- At Fish4Mortgage we have lenders that will give you a Buy to Let mortgage even if you earn a minimal income, speak to one of our team today and see if your income can affect you eligibility when it comes to getting a Buy to Let mortgage.
- you’re under a certain age: lenders have upper age limits, typically between 70 or 75. This is the oldest you can be when the mortgage ends not when it starts. For example, if you’re 45 when you take out a 25-year mortgage it will finish when you’re 70.
How much can you borrow for a Buy to Let mortgage?
The maximum you can borrow is linked to the amount of rental income you expect to receive.
Lenders typically need the rental income to be 200–300% higher than your mortgage payment.
To find out what your rent might be, talk to local letting agents, or check the local press and online to find out how much similar properties are rented for.
Find out how much properties are being rented for in your area on the Rightmove website.
We are in no way affiliated with any other bank or financial organisation and offer a whole of market solution to meet your requirements. Your initial meeting will be completely free of charge and you will be under no obligation, for more information contact us.
*Buy to Let mortgages are not regulated by the Financial Conduct Authority.