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Buy to let mortgages

Buy-to-let mortgages are specifically designed for people who want to buy a property to rent out. Buy-to-let mortgages are usually more expensive than normal mortgages, but they could help you become a property investor. If you don’t own your own home outright, or with a mortgage, finding a buy-to-let mortgage will be hard.

Buy-to-let mortgages are generally arranged to either provide the borrower with an immediate income, or to act as a longer term investment.  Accordingly landlords may prefer to keep monthly payments as low as possible by arranging an interest only mortgage.  Or they may prefer to maximise equity for the future by arranging a repayment mortgage and reducing the debt over the years.

Recent changes to the ability to offset mortgage interest has meant some borrowers may prefer to arrange their portfolio into a limited company.

When landlords have 4 or more properties in their portfolio, they will be classed as a professional landlord and subject to more stringent checks when applying for a buy to let.  This can sometimes mean arranging  a mortgage is more difficult with certain lenders.

The other key points to consider include:

  • Interest rates tend to be slightly higher
  • The minimum deposit for a buy-to-let mortgage is usually a quarter (25%) of the property’s value, although some lenders now offer smaller deposit options at 15%
  • Interest only is widely available with the sale of the property as the repayment vehicle
  • First time buyers are accepted by some banks
  • Some lenders require a minimum income from the applicant

If you would like further advice and guidance regarding buy-to-let mortgages, please call one of our team who will be able to help you.

Ask us about Mortgage Plus

Take the stress out of your property purchase with our innovative Mortgage Plus service – we can fast-track your mortgage application, negotiate the purchase price and deal with estate agents, lenders and solicitors on your behalf.

“I have recommended KMA to all my friends and if you’re buying a house or remortgaging I would look no further – the team are friendly, helpful people who have your best interests at heart every step of the way.”

Dawn Kenyon, A MORTGAGE & REMORTGAGE CUSTOMER

“Sharon and her team have been a great help while trying to buy my first property. They talked me through the process step by step and sent me weekly updates on the progress of my purchase. I am confident that I have a great deal on my mortgage.”

Gina Rowland, A MORTGAGE CUSTOMER

“I cannot thank the team at Key Mortgage Advice enough. They provided an excellent service and were able to arrange our mortgage within a very tight, three week deadline. I would highly recommend them.”

Matthew Agrimi, A MORTGAGE CUSTOMER

“After a chat about my goals, Sharon put forward my case to a number of lenders and within a couple of days a local business manager from Barclays offered to support my application. I cannot fault the team at KMA, I have used and recommended them for nearly 10 years now and they are always my first choice.”

Jamie Goodlass, A COMMERCIAL MORTGAGE CUSTOMER

“Our clients ask us for advice on mortgages for both domestic and commercial premises and we have no hesitation in recommending them to Key Mortgage Advice. The team has a breadth of knowledge which they skilfully impart to our client base, who are always happy with the advice they receive.”

Champion Accountants, A COMMERCIAL PARTNER