Finance4 a buy to let mortgage

Buy to let mortgage advice from the experts at Finance4

Lenders will look at three main factors when considering whether to offer you a buy to let mortgage:

The applicant, the property and the rental income from the buy to let property.

Buy to let mortgage:- The Applicant

Most lenders will insist on a good credit history, however there are a small number of lenders willing to grant a buy to let mortgage to applicants with past problems. You won't be surprised to know that the interest rate on this type of buy to let mortgage will be higher than for somebody with a good credit score.

Most lenders consider a buy to let mortgage as a commercial proposition i.e. the rental income will repay the buy to let mortgage. Your employment status and income are not normally subject to any checks unless you will be using your personal income to subsidise the buy to let mortgage. It is possible to subsidise a buy to let mortgage using self certified (no proof required) personal income.

Buy to let mortgage:- The Property

Lenders will look at the worst case scenario when considering a property for a buy to let mortgage i.e. will we easily be able to sell the property and get our money back. The types of property that lenders are wary of (maybe you should be too) for buy to let mortgage purposes are: flats above shops, high rise flats, ex local authority flats, new build flats (now called apartments), flats with a shared balcony access to the front door, or multi let properties for which you will need an HMO mortgage. Buy to let mortgages for houses are generally more straight forward, lenders would  want to know if the house is ex local authority, is adjacent to commercial premises or is of non standard construction.

We have access to buy to let mortgage lenders for any property in any condition in any location. Please call 0800 019 9605 for expert buy to let mortgage advice.

Buy to let mortgage:- The Rental Income

Not so very long ago the rental income had to be one and a half times the interest only buy to let mortgage payment. This was sensible as it meant that the borrower was covered for maintenance to the property and periods without a tenant.

Now that the buy to let mortgage market is so competitive, lenders have become desperate for customers, and so have come up with various ruses to lend irresponsibly (in our opinion): no rental assessment from a qualified surveyor i.e. just a letter from a letting agent (unbiased of course) will do, self certification (no proof) of personal income to subsidise the buy to let mortgage, and lastly some lender's only require the rent to be 75% of the interest only buy to let mortgage payment.

There are now more than eighty lenders of buy to let mortgages, please call us on 0800 019 9605 for advice on the best buy to let mortgage for you.

Buy to let mortgage:- The Best Rates Available

Lenders know that if they offer a very low initial buy to let mortgage rate, they will appear in the 'best buy' tables published in the newspapers, and in the sourcing systems used by brokers. Obviously, low buy to let mortgage rates are not profitable for the lender, in the past they relied on borrowers staying with them on the standard variable rate, once the discount period came to an end. Once that stopped working they designed buy to let mortgage products that had penalties for early repayment after the initial discount period. Now that the public no longer fall for this particular trick, lenders are now offering low initial buy to let mortgage rates with very high completion fees. The fees are added to the loan, otherwise nobody would contemplate paying them, which means lots more interest for the lender.

At Finance4 we will consider all of the costs before recommending a buy to let mortgage, please call us on 0800 019 9605 to find out which really is the best deal.