Buy to Let
Buy to let mortgages differ to ordinary residential mortgages in 3 main ways:
Lenders will assess your buy to let mortgage based upon the rent you are likely to receive as well as your income. In some cases your income is not ever considered.
Buy to let mortgages tend to have a slightly higher interest rate.
Buy-to-let mortgages require a larger deposit than regular loans (typically 25%), and you'll need to show the lender that the rent will cover your interest payments on the mortgage by at least 125% - in case the property stands empty for a while or needs maintenance.
You should also set money aside for arrangement fees, which can be as much as £2,000.
You must pay Stamp Duty Land Tax if you buy a property over a certain price in England, Wales and Northern Ireland.
When purchasing a buy to let property you will need to decide whether your primary objective is income or capital growth. Your decision may affect the type of property you purchase, the location and whether you opt for a repayment or interest only mortgage.
Please Note: The Financial Conduct Authority does not regulate some forms of buy-to-let mortgage.
If you're looking for a Buy to Let Mortgage Adviser covering Deeside, Flintshire North Wales, Chester, Cheshire, Wirral & Merseyside; ADH Mortgage Services can make all the difference when it comes to obtaining the most suitable rate to fit your needs. Working with landlords frequently, we will look to identify the best mortgage to suit, whether you have one property or a large portfolio.