Buy To Let Mortgages

More and more people are  entering the buy to let market as they see property as being an excellent long term investment. Many people are now reluctant to rely on pensions and other investments to provide them with the lifestyle they require in retirement.

A Buy to Let mortgage scheme is designed to enable an Individual or Limited Company to purchase a property for investment purposes, i.e. for letting rather than for owner occupation. Some of these schemes are not regulated by the Financial Services Authority.

Lenders do not usually use income multiples when deciding how much to lend a Buy to Let applicant. The amount of the advance is calculated usually on the predicted month rental income being around 125% of the monthly interest payment of the loan.

But there are many other things to consider. “Interest only” or capital repayment; what repayment term; Fixed rate, or Tracker; Lower interest rate with redemption penalties, or higher rate with no tie-in ? The list goes on...Your circumstances, and facilities available will differ if you are not in full-time employment – a student perhaps, or retired – or if you have past credit history difficulties like mortgage arrears or CCJs.

Facilities differ, and are not available from many lenders for Limited Companies, Ex-Pats and foreign nationals. You may be “to young, or to old” for some lenders, or perhaps they just don't like lending money to a first time buyer. And while we are on “favourite subjects” what about the insurances that you MUST have, and those that you SHOULD have?

 If you have negotiated a discount on the property you are purchasing, we can even look at using this discount to reduce your initial deposit.

At CML we are specialists in the buy to let market, if you would like a Portfolio review, we could arrange this with one of our experienced brokers, so if you already have buy to let properties, why not make sure they are working at their most efficient? Whether you have a large portfolio of Buy To Let properties, or just a single house to let, you will benefit from the services available from an experienced mortgage broker. As with Residential Mortgages dedicated professional staff will offer you the advice specific to your individual needs.