Buy to Let Mortgages
A buy to let mortgage is when you purchase a second property with the intention of letting it out to tenants. Many people want to increase the size of their property portfolio to take advantage of rising house prices and rental rates. Of course, while it can be a very lucrative endeavour, it is important to make sure you invest in the right kind of property and secure the best mortgage available.
The UK Buy-to-Let mortgage market has expanded dramatically over the last 5 years; however the recent troubles in the market have severely affected the number of products available. If you’re thinking about buy to let mortgages, whether it’s your first investment, a seasoned private landlord, or looking to get into student properties we can help you find the best option in minutes.
If you are looking to purchase your first buy to let property or want to expand an existing property portfolio Ascot Mortgages is a specialist buy to let mortgage broker here to help. By utilising our expert guidance, market leading providers and industry knowledge we can assist you to get the right buy to let mortgage to achieve the best returns on your initial investment thus allowing you to be in the best position to build your portfolio in the future.
For 2013 Ascot Mortgages are able to provide high LTV buy-to-let mortgages for new and existing landlords. Our range of high loan-to-value deals extends up to 80% mortgages, and are ideal for landlords with a low deposit.
When you take out a buy-to-let mortgage, you will be expected to meet certain criteria:
Buy-to-Let deposit: You will be required to put down a deposit for buy to let mortgages and this will be typically larger than for a standard residential mortgage – it will likely be 20-30% of the property’s value.
We currently have an excellent low deposit mortgage product available – please contact us.
Rental income: Your expected rental income must exceed your buy to let mortgage repayments by a certain percentage – for example, your mortgage lender may require a rental income of 125% of your monthly mortgage payments.
Your buy to let mortgage lender will also want to establish whether the property you are buying is a good long-term investment. Many investors calculate this in terms of “yield” a simple way of calculating the yield is the following formula:
Gross BTL Yield = (annual rental income) / (house price)
e.g. £6,000 annual rent (£500 PM) / £100,000
= 6% Yield
Note: A general rule of thumb is that a good yield is generally above 8% – however this varies across the country and you should do your own research in to what is the best investment property for you. Professional landlords may get a better overall financial deal by considering a buy to let portfolio mortgage if you have more than one buy to let properties.