The Solution: Using our knowledge of the whole market, we identified which lenders could process this type of remortgage quickly and we narrowed our search to just fee-free products. Once a suitable mortgage had been chosen, we highlighted to the lender the need for a quick turnaround on the case at the start of the process. Much to the client's delight, a formal mortgage offer was granted within 5 days of submitting the application, and the funds were released within a month.
To start your buy to let mortgage application today, you can call me, Charlie Potter, on or Alternatively, you can email me cpotter mortgagesforbusiness.
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Becoming a landlord. Using a letting agent. All on Buy-to-let. How much can you borrow when taking out a mortgage? How is coronavirus affecting house prices? Related guides in Which? In Tax. Tax on property and rental income. How rental income is taxed Expenses and allowances landlords can claim Rent-a-room scheme: Letting a room in your When assessing your affordability, the lender may also offset your income against any other outgoings you have, such as outstanding loans.
Having significant outgoings could see the provider cap the amount you can borrow. On average, buy-to-let mortgages require a larger deposit than residential. There are factors which affect the amount of deposit the lender will request. For instance, bad credit and non-standard construction are variables that can make a mortgage agreement higher risk, so the provider may ask you to put down a larger lump sum to safeguard themselves.
The source of your deposit will also be relevant, as it may restrict the number of approachable lenders. Those with uncommon deposit sources, such as cash savings and overseas investments should seek specialist advice.
Applicants with poor credit history should seek out the lender who offers the most flexibility to someone in their circumstances. Some UK mortgage providers are wary of customers with no credit history, those with county court judgements against their name and borrowers with individual voluntary arrangements IVAs , as well as those with a track record of late payments or defaults. They can connect you with the lender most likely to offer a favourable deal. These customers would be classed as portfolio landlords.
A few, however, have no buy-to-let limits in this regard. Age is a factor some lenders might consider when determining buy-to-let mortgage eligibility. The minimum age of applicants in the UK is 18, but some providers refuse to deal with borrowers under 21 or At the other end of the scale, some will only lend to applicants up to age 75 , but for others, the cap is 85, and a minority of lenders list no age restrictions whatsoever in their buy-to-let mortgage criteria.
When it comes to negotiating the term, make sure you set it against your repayment plan. If you will be using income from tenants to settle the loan, work out how long it will take to pay off the balance via their monthly rent. There are, of course, other ways to settle your end-of-term debt, such as through the sale of another property, endowment policies and stocks and shares, and the advisors we work with can determine whether one of these repayment vehicles might be a better fit for you.
If you have questions about buy-to-let mortgage criteria or are ready to apply for one of these products, you should start with professional advice from a broker. The right broker will be able to assess your eligibility and search the entire market for the best buy-to-let mortgage that you qualify for.
Along the way, they will offer you bespoke advice and help you with any paperwork. We offer a free broker-matching service that will pair you up with a full-vetted expert who has a strong track record helping customers just like you get a buy-to-let mortgage. Generally lenders prefer BTL applicants to already own a property, however, more lenders are recognising the need for first-time buyer BTLs or for those who have accommodation provided by their employer but still wanting to buy a property for investment.
Factors including bad credit, age, property type and income might rule some applicants out, depending on which lender they approach, but with whole-of-market access on your side it may be possible to find a specialist provider whose buy to let mortgage criteria, terms and conditions are flexible enough to offer you a favourable deal.
If the rental valuation of the property is not high enough, the loan to value LTV may be lower, so the overall investment must demonstrate that the mortgage payments are supported by the rental income to an appropriate amount. Note that, as with any application for a mortgage, the lender will look at various aspects of your finances in order to assess your ability to service a mortgage, such as your income, level of deposit and the type of bad credit that you have incurred.
Specialist lenders tend not to deal directly with the public, usually only accepting mortgage applications through a trusted mortgage broker instead of advertising online or on the high street. At Just Mortgage Brokers, we have access to a number of specialist lenders who are comfortable lending to first-time-buyers who have incurred some bad credit, and will be able to give you a good overall idea of the options that will be open to you after we have assessed your exact situation.
Please contact one of our advisers and we will be able to advise you further. Many people ask if it is possible to move into their Buy-to-Let property, in case it should fall vacant for a while, or they need a home temporarily until they can make new arrangements after selling their main place of residence or moving back into town after working away for an extended period.
The answer to the question is no — you are not allowed to live in your Buy-to-Let property. When deciding on whether to grant you a mortgage, lenders use different criteria for a Buy-to-Let property than for a conventional residential mortgage, basing their decision more on the anticipated rental revenue than on your own personal income. When you change the nature of how the mortgage repayments are being funded, you are now outside of their assessment for your loan — this is important to how they view your financial position, and they will take a dim view.
There will also likely be conditions built into your Buy-to-Let mortgage regarding who can live there and who you can rent it to. You should be aware that lenders do make checks to ensure that borrowers are not living in the Buy-to-Let property they have granted a mortgage for.
If they do find you living in your property, in breach of your mortgage agreement, then they are likely to take severe action — they could ask for the mortgage to be repaid, and you could risk losing your mortgage facility and your home. The best thing to do in every case is to talk to your lender about your intention to move back in and open a dialogue about your options. It may be that the most suitable course of action is to convert your Buy-to-Let into a residential mortgage.
As the mortgage market has evolved to meet new demands in recent years, there are now a handful of high street lenders that will offer Buy-to-Let mortgages for first time landlords, as well as the specialist lenders you would have been obliged to approach in the past.
New products and deals are coming on to the market all the time, and some lenders have made shifts in their criteria to be more accommodating, rather than miss out on market share.
While there are a number of lenders we could recommend for first-time landlords, it would be impractical for us to list them here — the deals, rates and criteria offered today could have changed by next week. So, what might be the most suitable lender for one, might not be the right lender for another. At Just Mortgage Brokers, we have great relationships with all kinds of lenders from all across the mortgage market, liaising with them on a daily basis about mortgage offers and applications from potential borrowers with a huge variety of histories and resources.
With this knowledge and familiarity, we can give you the best opportunity to secure the most suitable mortgage for your requirements. The first thing to consider as a first-time landlord when looking at the best Buy-to-Let mortgage rates is whether you want a fixed rate or a tracker rate.
A fixed rate will stay the same for a certain period usually 2, 3 or 5 years before reverting to the an interest rate based on the prevailing Bank Of England base rate at the time — this will allow you to predict your payments for a defined time, avoiding unexpected rises, but also losing out if rates fall. A tracker rate is set as being a certain percentage or fraction of a percentage above the Bank of England rate or the LIBOR rate for a certain amount of time again, usually 2, 3 or 5 years — if this rises or falls, then so will your mortgage payments.
The upside of a tracker is that the interest rate is generally slightly lower than that for a fixed rate mortgage. However, be careful not to base your assessment of a mortgage product on the headline interest rate alone.
There will be variations across products in the duration of an initial rate offer, what it might change to after a certain period, the amount of deposit required in order to achieve a certain rate and the planned total duration of the mortgage, among other aspects. The rate you will be offered by a lender may also depend on other criteria that will vary from one lender to the next — each will have their own ways of making lending decisions, judging the revenue potential in the property and assessing your creditworthiness.
To find out exactly what your Buy-to-Let mortgage options are as a first-time landlord, get in touch with one of our advisors today. Being a first-time landlord can be in equal parts exciting, enlightening and daunting. Finding the right Buy-to-Let mortgage to suit your circumstances and ambitions for your property — as well as your aims for your income — is a key part of the jigsaw puzzle, which is why it pays to get professional advice when you are certain this is the road you want to head down.
A specialist mortgage broker such as ourselves at Just Mortgage Brokers has a complete overview of the mortgage market — all the lenders and their deals, products, policies and criteria, as well as the trends within it — and will be able to give you a strong recommendation for which course to take, according to your individual circumstances and requirements.
We also have strong relationships with a great number of lenders and will be able to informally enquire what deal might be possible in a particular situation before actually helping you to put in your application, and often get deals on an exclusive basis. Through our years of dealing with specialist mortgages — including Buy-to-Let mortgages for first-time landlords — one fundamental fact has become abundantly clear: no two applicants are alike, and no two property purchases are exactly the same.
Everyone will have something unique about their case. Our initial consultations — where we get a clear idea of your situation and the kind of mortgage that will work well for you — are free and carry no obligation to follow through.
Why not find out all your options? Get in touch with our team today. There is no guarantee that it will be possible to arrange continuous letting of the property, nor that the rental income will be sufficient to meet the cost of the mortgage. Your property may be repossessed if you do not keep up repayments on your mortgage.
There may be a fee for mortgage advice. The actual amount you pay will depend upon your circumstances. We use cookies to offer you a better browsing experience and analyse site traffic. Read about how we use cookies by viewing our Cookies and Privacy Statement. You can also control your cookies by clicking "Privacy Preferences".
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