WE ARE EXCLUSIVELY PARTNERED WITH ONE OF THE UK’S LEADING WHOLE-OF-MARKET MORTGAGE BROKERS
Making sure you aren’t paying more than you absolutely need to for your buy-to-let mortgage is a vital part of getting the best returns from your investment property. It doesn’t matter how much you charge in rent, if your funding is not competitively priced you will not be generating as much income as you could.
Our team of experienced advisers has access to a wide range of buy-to-let mortgage options, as well as many deals that are only available to brokers, so you can rest assured that you will get the right loan for your circumstances.
What we offer
Our team offer highly exclusive, personalised services to help you grow your investment portfolio. Whether you are a first time investor, or have a large portfolio, our services will benefit you.
A BESPOKE SERVICE
We provide a premium, personalised experience for all clients, working quickly and discreetly to achieve your desired outcome.
INDUSTRY RELATIONSHIPS
We have exceptional industry relationships with all the lenders and insurance providers we work with, enabling us to negotiate the best terms for you.
SPECIALIST KNOWLEDGE
For our team, no situation is too complicated. Our experts knowledge and wealth of experience means we find solutions where others often cannot.
TRANSPARENCY AND TRUST
Our advisers pride themselves on their commitment to transparency, giving you peace of mind.
Buy-to-let faqs
If you are buying a property to rent out, you can’t use a standard residential mortgage- you will need a buy-to-let mortgage. With a BTL mortgage, it’s the rental income of the property which determines the size of your mortgage rather than your income.
Typically, lenders require the rental income 25% – 45% higher than the mortgage payments. If your mortgage is £1,000 a month, the lender would expect to see a rental income somewhere between £1,250 – £1,450 per month.
Most lenders offer buy-to-let mortgages. There is a lot of choice available and it can be overwhelming. How can you be sure you have chosen the best deal if you haven’t sifted through all available deals? This is where a whole-of-market mortgage broker comes in- to find the best mortgage for you.
It is also worth noting that some buy-to-let lenders only lend via brokers.
Typically you need a higher deposit for a buy-to-let property than you would a residential mortgage. Most buy-to-let lenders will want at least a 25% deposit.
- Interest Only. You only pay the interest on the mortgage each month and at the end of the term still owe the original amount. This results in lower monthly payments.
- Fixed Rate. This ensures you know exactly how much your payments are for the duration of the fix. Your mortgage payments are unaffected by the Bank of England interest rate.Fixed rates range from 2 – 10 years.
- Variable Rate. This tracks the Bank of England base rate plus a set margin. This means that mortgage repayments can go both up and down depending on changes to the base rate.
When choosing a buy-to-let mortgage, it is important to work out the total cost to ensure you compare deals on a like-for-like basis. Lenders may offset a larger fee against a lower interest rate or vice versa
Most lenders charge an upfront arrangement fee ranging from a set fee of hundreds or thousands of pounds to a percentage of the loan amount borrowed
There will also be a mortgage valuation fee to reassure the lender that the property is worth what you wish to borrow, which usually costs a few hundred pounds. However, it is not a survey and will tell you nothing about the condition of the property, so it is worth having a homebuyer’s report or full building survey if the property is old.
There are also conveyancing and legal fees. It can be worth paying for a good solicitor who will respond to your queries in a timely manner.
Stamp Duty is a tax paid on property purchases. There is a 3 per cent stamp duty surcharge on second homes and buy-to-let properties in England, Wales and Northern Ireland. So, if the usual stamp duty on the property purchase is 2 per cent, you will pay 3 per cent on top of that, or 5 per cent in total.
An increasing number of landlords are buying property via a limited company rather than in their own name. This is mainly down to the removal of mortgage interest tax relief. Landlords must now pay income tax on all of their rental income, even if some goes towards mortgage interest.
If you purchase through a limited company, all costs, including mortgage interest payments, can be deducted as business expenses. If you buy property through a limited company you pay corporation tax on profits and dividend tax rates, which are less than income tax for higher-rate taxpayers, so for many private landlords this is a sensible option
If a property is sold for a profit, you will also have to pay corporation tax on any gains. Then you have to pay income tax when you withdraw any money from the company. However, the advantage of a company is that you only have to take money out when you need it so this could be in a tax year when other income is low. A limited company can also help with inheritance tax planning if you intend to pass your property portfolio onto your family.
We are not authorised to give taxation advice therefore it is very important to seek specialist advice.
Landlords with four or more properties are referred to as ‘portfolio landlords’ and may find it trickier to get additional finance. Portfolio landlords must provide mortgage details, cash flow projections and business models for every property they own when applying for finance
It is worth using a broker if you are a portfolio landlord as they will know which lenders are best to approach for funding.
It is wise finding out how much you can borrow before you make an offer on a property. Lenders will also look at your outgoings and credit history
A ‘decision in principle’ from a lender will give a ballpark figure as to what mortgage you can achieve. You can then go house hunting armed with this information, giving vendors and estate agents comfort that you are a serious buyer. Once you have found a suitable property, you can make an offer safe in the knowledge that you can afford to buy it. When it has been accepted, you can proceed to a full mortgage application.
Our mortgage advisers have years of experience in arranging buy- to-let finance for clients, whether they are first-time landlords, have significant property portfolios, are buying in their own name or via a limited company. We have access to a wide range of buy-to-let mortgage options, as well as many deals that are available only to brokers, so you can rest assured that you will get the right loan for your circumstances. We manage the mortgage process from start to finish and can turn things around quickly if necessary.