Buy to Let Mortgages

What is a Buy to Let Mortgage?

Buy to Let mortgages are designed for people who want to buy a property and rent it out rather than live in it themselves.

Despite changes which restrict Buy to Let tax relief for landlords, and a stamp duty surcharge on Buy to Let properties, renting out property is still an attractive way to generate income. Current low interest rates mean that there are plenty of competitive Buy to Let mortgage deals to choose from.

You can’t apply for a standard residential mortgage on a property that you let out as a landlord. If you already have a residential mortgage on the property you want to let out you should talk to your lender about switching to a landlord mortgage, or seek advice from a Buy to Let mortgage broker if you are buying a new property to let out.

Here, we explain everything you need to help you find the best deal.

How Much You can borrow on a Buy to let mortgage

Thinking of buying a rental property? Find out what you are likely to be able to borrow

Ever North Mortgages Can Help You to Get Your Buy to Let Mortgage

If you are thinking of getting a Buy to Let mortgage and just want to talk to an adviser, please get in touch with us. One of our mortgage advisers will be happy to speak to you to discuss your options. Speaking to us does not mean that you have to use our services, although our services are completely FREE.

Ever North Limited is authorised and regulated by the Financial Conduct Authority (FCA), but the FCA does not regulate most Buy to Let mortgages.

Who can get a Buy to Let mortgage?

As well as checking your rental income is sufficient, lenders will have other criteria you need to meet before they offer you a Buy to Let mortgage. Buy to Let mortgages can be more risky for lenders so they tend to have stricter eligibility requirements than for residential mortgages.

  • Many lenders have a minimum income requirement, which is often £25,000 a year.
  • Usually the minimum age to be eligible for a Buy to Let mortgage is 21.
  • Some lenders will impose upper age limits too. They may require, for example, that you will be no older than 85 at the end of the mortgage term.
  • It is possible to get a Buy to Let mortgage if you’re a first time buyer landlord, but your mortgage choices are likely to be restricted. Lenders will usually prefer you to be a homeowner.

Finding the Perfect Buy to Let Property

Before you apply for your Buy to Let mortgage, the first step is to find a property.

If this is your first investment property, then it would be wise to do some research before you start hunting for a house.

The 2 main things you should consider when you begin your property search are your budget and your location. Pick a location where the rental market is good, so that you will not suffer from vacant periods. Once you have zeroed in on your ideal location, look for properties within your budget. Often it is a good idea to look at estate agents’ website to get an idea of what is available in your chosen area.

Another thing to keep in mind is your location relative to your property’s. Choosing an area for your Buy to Let property which is far away from you is not a smart choice, as it will mean many long travels between your home and property if you need to do inspections or repairs. Having your buy to let property nearby will make life easier.

You can use the services of letting agents to rent out and maintain your Buy to Let property, but remember that you will need to pay them a fee, which will eat into your profits. Alternatively, you can use the ‘tenant finding’ services of a letting agent, where they will find a suitable tenant for you and take a one-off fee. The service usually includes advertising your property, vetting the tenants, setting up the contract and making an inventory.

 

Stages in the Buy to Let mortgage process

  1. Save up a deposit for your Buy to Let property mortgage.
  2. Decide on a budget for the purchase of your property.
  3. Choose your property in the area of your choice.
  4. Use the calculator hereto calculate how much rent you should charge.
  5. Compare the best buy to let mortgage deals that you may qualify for here
  6. Call or email us to speak to a mortgage adviser for FREE.
  7. Discuss possible options with our expert and if you do decide to use our services, let us do all the hard work to get you your Buy to Let mortgage!

Getting a buy to let mortgage with a broker

While you could go directly to lenders for a Buy to Let mortgage, usually the best deals are available to the brokers. Lenders do not offer all deals to individuals. To that end, you could get a really lucrative Buy to Let mortgage deal if you made your application through a broker.

At Ever North Mortgages, we are experts at arranging Buy to Let mortgages and we don’t charge you a fee. We will get you the best deal that suits your unique financial circumstances. And the best part is that our services are completely free.