Buy To Let Mortgages
Buy to Let Mortgages are those used for the purpose of buying any type of Residential property, such as a Flat or a House, so that someone else can live in the property, and you can receive a regular rental income from them.
The process of buying a property for Buy to Let (Investment) purposes is exactly the same as if you were buying your own home. Please read through the Home Purchase or First Time Buyer Pages to see the details of that process.
With Buy to Let Mortgages and the buying of Investment property, there are some additional areas you need to consider :
Some Buy to Let Mortgages are not currently regulated by the Financial Conduct Authority, typically those bought purely for the purposes of investment. As such you will have more limited protection compared to a Residential Mortgage. The majority of Mortgage Brokers have to be Regulated, and will adopt a ‘Regulated’ approach of advice and recommendation, simply to deliver the same consistency of advice whatever type of mortgage it may be.
Unlike Residential Mortgages, the use of Interest Only Mortgages is account for the vast majority of Buy to Let Mortgages, and are perfectly acceptable (even preferred) by lenders.
Why? The correlation between the mortgage payment and the rent received is carefully considered with Buy to Let mortgage Lending, and lenders prefer to have a good ‘gap’ between your monthly mortgage payments and the rent.
Also, should you have any void periods where a tenant may not pay their rent, or you may be between tenants, you will still have to keep paying the mortgage payments, so the ability to keep those payments low, and also to use any surplus funds from previous months, will mean there is no pressure on your own mortgage and day-to-day bills.
Lastly, the mortgage interest is the only element of the mortgage which is ‘Tax-Deductible’, and not the capital element of a mortgage payment. As such, it just makes it some much easier for you and your accountant to work out how much tax to reclaim.
You can have a Repayment Mortgage if you wish, and for some that is the right thing to do still, but just be mindful of what you re looking to do with your investment.
The level of rental income is important of course, it’s your income at the end of the day too!
A Mortgage lender will be looking at your ability to continue to pay the mortgage should interest rates be significantly higher than they are at the moment, and a little extra in reserve.
Typically we will need to know the gross monthly rental income, so if you are looking at a new property please make sure you ask for that information.
Some lenders also allow for personal income to be combined with the rental income, to allow the mortgage to be both affordable and accepted.
Although the rental income needs to more than cover the mortgage cost, lenders are looking much closer to the relationship between your declared income and the amount of mortgages you may have.
Most lenders want a minimum of £25,000 income per year before they will look at a Buy to Let Mortgage for you – if you have a low declared income and a significant amount of mortgage finance, this might restrict the lenders you have access to.
For clients that only have Rental Income, such as a Portfolio Landlord, we will need to see your Tax Returns and Summary of Income Calculations (previously SA302’s) – so please make sure your income is accurately recorded with HMRC.
Typically family houses and flats – where you would only need one Tenancy Agreement.
HMO – Houses in Multiple Occupancy
Where you have a larger property that is set up for a ‘Per Room’ tenancy, with some shared facilities. Typically the properties are more expensive, but the returns can be greater as well. There is a more limited number of lenders and mortgage options, however the additional rental income you receive more than outlays any extra costs.
Shops / Offices / Commercial
Whether a mixed use unit, or a specific shop or office unit, you can get commercial finance for the purchase and subsequent leasing. Please forward us details of what you wish to purchase as each opportunity will need to be assessed on its own merits, and terms may be personally priced.
We can help in all these situations – the more complicated the property, the less lenders will be interested and the cost of the finance may be higher.
Whatever property you decide to buy, the condition of the property is really important if you need a mortgage to finance the purchase.
The majority of Buy to Let Mortgage Products are designed for properties that are deemed to be ‘Ready to Let’ almost immediately.
However, there are an increasing number of properties that are coming to market that need a reasonable level of ‘Refurbishment’ before they could be let, such as a new Kitchen, Bathroom, Decoration, even some structural repair.
With such properties we will need to consider products designed for Refurbishment – the number of options are quite limited and the cost of the mortgages are a little higher, but if you are buying a property that needs some work then the chances are you are buying at a discount. Please check with us before you look to make an offer on such a property.
Again we have lenders that will help with a Refurbishment opportunity, typically short term finance that is repaid once the property is in a condition suitable for a normal Busy to let Mortgage – please ask for details.
Mortgage Advice from a Quality Mortgage Broker
As a Mortgage Broker, Essex Home Finance are ideally positioned to help those who live not only in the Chelmsford area , but across Essex and beyond. At Essex Home Finance, we help a wide variety of clients such as First Time Buyers, Homemovers, and those who invest in Buy to Let property. Many of our clients look to Remortgage so they can take advantage of the low market rates, helping them fund their home improvements or tidy up their finances.
There are No Broker Fee* for any First Time Buyers or Homemovers, Residential Remortgages, and for all Product Transfers (Residential or Buy to Let). For those who need a Buy to Let Mortgage we charge just £149 on Offer – there are no upfront fees, meeting costs, etc.
With 25 years experience we believe that finding you the Right Deal has never been easier with our refined systems. Our comprehensive list of Mortgage Lenders, and large array of mortgage deals available means that we’ll be able to find you a deal that suits your perfectly.
Mortgage Advice That's Right For You
Let us help find a cheaper rate for your mortgage, reducing your monthly outgoings. Also a great way to raise money to pay for Home Improvements, repay some lingering debts, or help fund a large project.
Whether a First Time Buyer, Moving up the Housing Ladder, or taking advantage of the many Government schemes, our knowledge, experience, and significant range of products can make a real difference to your situation.
Investing in property is still a great way to gain a better return on your money. Having helped many clients build great Portfolios, as well as individual investments, we can advise on both property and the mortgage options, critical to your succes – and that’s where Essex Home Finance can help
New Build doesn’t need to be difficult, with an experienced hand we can lead you through Help to Buy, Shared Ownership and other similar schemes to own your own home.
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A Selection of the Latest Mortgage Rates
Mortgage rates change all the time which is why it’s important to seek professional advice by a Mortgage Broker to help find you the best current deal for your circumstances. With over 70 Lenders, and 12,000+ Deals, we strongly believe that we have the resources to find you the best deal for your situation, get in contact with us today.
How Much do you Charge?
At Essex Home Finance we do not charge for any Residential Mortgages. For Buy to Let Mortgages we will typically charge £149 on Offer, there are no upfront costs or meeting costs.
We don not charge for any Product Transfers, whether Residential or Buy to Let
Is your on-line service safe?
The short answer is yes!
We use the Smartr365 platform to provide a safe and secure online option for our clients, allowing us to collect the right information and also to upload the documents we require. As part of that platform we can value your property, Online ID Checks and Open Banking. ISO Accredicated
Are the any lenders that you don't use
We use almost every active UK lender in the UK. There are a small handful that do not work with, including Lloyds Bank, First Direct, Yorkshire BS and some smaller Regional Societies. Often we will have a different brand within a lender, for example we have Accord Mortgages who are the Broker equivalent of Yorkshire BS.
What documents will i need?
We are happy to take downloaded documents and photos of ID Documents as long as they are clear and photos are from above. On occasions lenders may ask us to see original documents, which we will advise you on if needed. But if you can please ensure you can access your Online Banking, or use our Open Banking option to download statements.
do you help with non-advised cases?
To comply with regulation, we only offer an Advised service for any of the services we provide, including insurance. Our advice will cover both price and criteria, why we have recommended a particular lender and deal, and we are responsible for that.
Is your insurance compulsory?
For most lenders there will be a requirement to take Property Insurance as a condition of your mortgage. You are free to take it with anyone, our Insurance is always well priced and we know is suitable for any mortgage lender.
Essex Home Finance Ltd is an Appointed Representative of Mortgage Intelligence Ltd which is authorised and regulated by the Financial Conduct Authority under number 305330 in respect of mortgage, insurance and consumer credit mediation activities only.
Registered address: Suite 1, 8 Kingsdale Business Centre, Chelmsford, Essex, CM1 1PE
Registered in England & Wales under number 10607263.
Your home may be repossessed if you do not keep up repayments on your mortgage.
We do not charge for Residential First Time Buyers, Residential Home Movers, Residential Remortgage, and all Product Transfers (Residential or Buy to Let).
There will be a fee for all Buy to Let Purchase and Buy to Let Remortgage cases. Typically our fee will be £149, payable on Offer. We will agree any fees with you before we proceed with your case.
There will be a fee for all Equity Release Mortgage cases. Typically our fee will be £695, payable on Offer. We will agree any fees with you before we proceed with your case.
We always aim to provide a high quality service to our customers. However, if you encounter any problems and we are unable to resolve them you can take your complaint to an independent Ombudsman.
Our advice is covered under the Financial Ombudsman Service.