You’re looking at the possibility of becoming a landlord and to do so, you need buy to let mortgage advice. When it comes to buy to lets, you are looking at an investment rather than a living space. With this comes a different approach from lenders in terms of criteria and what they look at.
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One of the biggest differences between a residential mortgage and a buy to let mortgage is the deposit. With a residential you can get mortgages of up to 95% loan to value. Whilst not having the best interest rates due to the higher risk, they are still available on the market. With buy to let mortgage advice you can’t get those sort of deals, with deposits starting at a bare minimum of 15% but the better and far more attractive deals are at the 25% level.
They also don’t depend on how much you earn, rather what the properties rental income will be. As that money will be what you will use to pay the mortgage payments monthly. This video from the Money Advice Service sums up a lot of the basics really well. Buy to let mortgages have more in common with a a commercial mortgage than residential. As with commercial mortgages lenders look at business income similar to how they’d look at rental income.
To start the process you will want to find yourself a property that is suitable and rents well. If you already have a mortgage in place with a buy to let we would look at a remortgage. Lenders will generally calculate the amount they can lend you in relation to the properties anticipated rental income. When a property is found with a good rental yield, we will assess your financial situation with a fact find.
By you filling out a full fact find it gives us the information we need to get the best deal available on the market. We would judge whether buy to let mortgage advice is even suitable for you. For example, if you were a first time buyer. In this scenario you are very restricted to buy to let options as lenders often want to see an existing residential mortgage in place. Our buy to let mortgage advice deal that suits your needs we will present an illustration. An illustration along with our client agreement detailing our fees will be presented to you.
If the deal and our buy to let mortgage advice service is right for you, you sign with us and we go from there to gathering documents for an application. Prior to this we will get you an agreement in principle with which to offer on the property. If this is accepted we can then proceed to getting the application filled out and completed. The documents gathered typically consist of ID, proof of deposit and income proof. Despite the fact the property will pay for itself mortgage wise, lenders will still want to see you earning so that they can have the peace of mind that the payments can be maintained if the property was to be not let at any period.
Upon all the documents being correct and in order, we proceed to the full application. We will fill this out on your behalf and submit it to the lender. At this point they will arrange a valuation of the property and check over your documents. If the valuation is satisfactory along with the documents provided they will submit a formal offer on the property. At this point our buy to let mortgage advice process is complete and you move onto the legal side of the process.
That is a very shortened down version of the whole process. Often lenders can come back with added paperwork required or questions that need to be answered. All of which we carry out on your behalf to make sure the process goes smoothly. Generally from the start of an application to a formal offer the buy to let mortgage advice can take a few weeks. As even if the paperwork is all satisfactory from day one with no queries, the valuation often takes a week or two to carry out and then upload onto their system. We take care of all this correspondence and fill the application out on your behalf, leaving you with only the documents to gather.
You will also need landlords insurance in place as this is the form of buildings insurance that is specially for landlords.
We value all of our clients and stick to a high level of customer care and attention. As we cover all areas of financial advice we like to keep our clients serviced for life. From a home mover mortgage if you want to move your current home. Even looking to build your own home, we can help finance that. All the way through to an equity release mortgage at the end of the line, we want to look after you.
Even though the offer signals the end of our advice, it isn’t the end of our care. Buy to let mortgage advice is only the start.
There is still legal paperwork to be processed and looked over by a conveyancer. We have a great panel of conveyancers that we work with closely who we can recommend if you don’t already have one in place. Typically this process takes weeks to complete. As a pre-requisite to the process completing you will need landlords insurance on the building. This is something we can advise you on and pride ourselves in offering a great package on this. Our insurances on this are only Defaqto 5 star rated as we believe it would be wrong to provide sub par insurance. Our advice on this really complements the buy to let mortgage advice process by taking care of you fully.
When you are looking at covering the building of something so important why go for anything less than the best. Please look at our buildings & contents insurance section for more details on the service we offer on this. Once the exchange of contracts is completed, you have insurance in place and have completed you formally own your own place and are a landlord. All that remains is to get the property let. From that point on it’ll be in your hands to manage as you see fit.
The best way for us to advise you is by you getting in touch. This way we can have an informal discussion about your position and your needs going forward. Then we can act if possible and advise as necessary.
Contact us today to see how we can help you become a landlord with buy to let mortgage advice. Please do be advised as well that we also cover the full remit of financial advice including pensions, investments & insurance.
Equity Release plans are not right for everyone. And it is important that you fully consider your options and receive independent financial advice before making a decision. It is also important that, if you do decide to use an equity release product, you choose one that meets your needs.
Remember that taking an equity release plan is generally a long term option. However, there are flexible plans available that may fit your varying needs and some will allow you to repay in the future without penalties.
All investments involve a degree of risk of some kind. This section describes some of the risks which could be relevant to the services we provide you. We may provide further risk information during the course of our services to you, as appropriate.
Our services relate to certain investments whose prices are dependant on fluctuations in the financial markets outside our control. Investments and the income from them may go down as well as up and you may get back less than the amount you invested. Past performance is not a guide to future performance.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Some Buy to Let Mortgages are not regulated by the FCA.
True Advice Financial Services is a trading style of TA and SE Hollom Ltd which is an Appointed Representative of New Leaf Distribution Ltd which is authorised and regulated by the Financial Conduct Authority : Number 460421.
Registered Office : New Leaf Distribution Limited, 165 - 167 High Street, Rayleigh, Essex, SS6 7QA.