YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE.
THE FINANCIAL CONDUCT AUTHORITY DOES NOT REGULATE SOME FORMS OF BUY-TO-LETS.
Looking to purchase or remortgage a Buy-to-Let property?
A Buy-to-Let mortgage is a secured loan you take out on a property that you intend to let out to tenants. Borrowing is primarily assessed on expected rental income, although some lenders may also consider personal income depending on the product and circumstances. In most cases the lenders will expect the rent to cover the mortgage by approx 145% but this does depend on many other factors, including your tax rate and fixed rate type.
Buy‑to‑Let mortgages typically require larger deposits than residential mortgages. Most lenders require around 20%–25%, although in limited cases higher loan‑to‑value products may be available, subject to criteria.
Investing into a Buy-to-Let property can be a profitable long term investment. However, it still has its drawbacks:
• There is no guarantee that the property will always have a tenant, so provisions would need to be made to ensure funds are available to pay the mortgage
• The property may need maintenance and repairs, pre-rental and during, which could be costly
• There are other costs that could be incurred such as lettings agents fees, license fees and insurance
• Additional Tax implications such as Capital Gains Tax – please consult a tax expert for further details
• Damage caused by tenants
For Buy to Let property you also need to ensure that you have specialist Buildings Insurance. We can arrange this for you and have access to some very competitive premiums.
If you are planning on buying an investment property, looking to let out your current home or have already done so, please get in touch on 01822 615 502 or use the Contact Us facility above.
