Types of Buy to Let Mortgages Available
Personal
Anyone (subject to the usual mortgage application status requirements) can apply for a buy to let mortgage. It doesn't matter if you have a residential mortgage, even if it is maxed out on all your available income. These mortgages are assessed on you, but the actual affordability is based on a stress test to see if it is self financing. In simple terms, this test calculates whether the rent is sufficient to cover the interest only mortgage payment with a suitable buffer or spare income.
Normally, a buy to let mortgage lender will require a larger deposit than a personal home mortgage. This will be in the region of 25% of the value or purchase price, whichever is the lower. Though as always, there are a few exceptions where a slightly lower deposit is possible.
These mortgages can be in just one applicant's name or multiple names (subject to the lenders maximum). You can share such a mortgage with anyone subject to their status. This is useful if you intend to buy a property as a joint investment venture with someone else.
You can have more than one Buy to Let mortgage. Indeed there is no restriction, though some lenders do limit the number you have with them. You can mix and match such mortgages with different applicants.
You can build property investment portfolios in you own name or you may consider setting up a limited company to own the property. Please see more on this below.
At Lloyd Vine we offer the complete service. If you are new to Buy to Let, you can request a consultation to fully discuss every aspect of this type of investment. It is an ideal opportunity to learn all about this and will ensure you set off on the right course. Please call us on 02380601601
Normally, a buy to let mortgage lender will require a larger deposit than a personal home mortgage. This will be in the region of 25% of the value or purchase price, whichever is the lower. Though as always, there are a few exceptions where a slightly lower deposit is possible.
These mortgages can be in just one applicant's name or multiple names (subject to the lenders maximum). You can share such a mortgage with anyone subject to their status. This is useful if you intend to buy a property as a joint investment venture with someone else.
You can have more than one Buy to Let mortgage. Indeed there is no restriction, though some lenders do limit the number you have with them. You can mix and match such mortgages with different applicants.
You can build property investment portfolios in you own name or you may consider setting up a limited company to own the property. Please see more on this below.
At Lloyd Vine we offer the complete service. If you are new to Buy to Let, you can request a consultation to fully discuss every aspect of this type of investment. It is an ideal opportunity to learn all about this and will ensure you set off on the right course. Please call us on 02380601601
Limited Company Buy to Let
You should definitely consider setting up a limited company to own your investment property, especially if you are building a portfolio or are a higher rate tax payer. Please look at are dedicated page here.
Portfolio Landlords - Having Four or More Properties
It is best to plan well ahead if you intend to build an investment property portfolio. With the prevailing rules and regulations, we favour you using a limited company. The mortgage application process for those of you who already have four or more properties has recently been made more stringent. We have more details on this here.
ExPat Buy to Let & Residential Mortgages
Would you like to keep a hold in the UK property market? Or maybe looking for an opportunity to diversify your investment portfolio? We provide our Expat customers with a full service helping you to apply for a buy to let mortgage to invest in properties in the UK. Everything can be accomplished remotely.