If you are planning to buy a property to rent out, you will need a buy-to-let mortgage. Will you buy in your own name or create a Ltd Company to own the asset?

Lenders use a different calculation to determine how much they can lend from a property owned by the owner. Preferring to look at the estimated monthly rental income to assess the highest available loan rate.

With a buy-to-let loan, mortgage lenders will look at the expected rental income as well as earned income in the estimate of the overall amount that they can lend as well as a minimum earned income. Our Independent Mortgage Broker can help you find a competitive Buy-to-let mortgage, whether you are buying an investment property or re-mortgaging an existing one.

Buy-to-let mortgage rates

The most popular form of mortgage for property purchases and rents is the choice of interest rates only. The rate of interest of a mortgage could be fixed or variable.

A fixed exchange rate implies that transactions will not rise or fall, while a floating exchange rate means that transactions will fluctuate based on the basic exchange rate of the Bank of England.

Buy-to-let mortgage rates vary and are dependent on the risk of the mortgage to the lender as well as the deposit available for an individual to put down. Buy-to-let mortgages rates are often higher than residential rates.

The explanation for this is that banks and other banking institutions believe that mortgages are more volatile than residential mortgages.
Our mortgage broker can advise you on a range of mortgage deals, including fixed rate and tracker loans.

Benefits of a Buy-To-Let Mortgage

• You can make an income: an advantage of a Buy-to-Let property is that it can include a steady income from rental proceeds (or cover your costs) whilst your property is likely to increase in value.
• There is a high demand for property, renting becoming a common way of life
• Property can generally a good long-term investment