BUY TO LET MORTGAGE
Investing in property is an exciting prospect, however there are important factors and additional tax duty obligations to consider when buying a second property…
Harris Begley has extensive experience of the buy-to-let mortgage market. Your Mortgage advisor will recommend the most suitable buy-to-let mortgage, taking into account your current financial situation and requirements and the potential rental return of the property. We can also advise on and arrange your insurance, including personal protection, buildings and contents and landlords insurance.
There are 3 main differences with a buy-to-let mortgage:
The Rent Potential – the decision as to whether or not a mortgage will be offered is usually based on the rent you will earn in addition to your income. In some cases however, your income is not considered.
The Interest Rate – buy-to-let mortgages usually have slightly higher interest rates.
A Larger Deposit – typically a minimum of 20% or 25% of the property’s value is required as a deposit.
We offer a free, no obligation initial consultation to discuss your mortgage requirements and we will source and supply a mortgage quote for you without charge. After your free of charge consultation, if you confirm that you are happy to proceed with the mortgage quote supplied, you will be subject to a mortgage arrangement fee of £495, which is payable at the mortgage application stageOur dedicated administration team are available 9am-5pm weekdays either by phone or email, so you can easily contact the person managing your mortgage application to ensure a fast, smooth process.
To book your free, no obligation initial appointment, please contact Harris Begley on Tel 01736 366550 or email email@example.com
Additional Letting Costs To Consider
Harris Begley has extensive experience of the buy-to-let mortgage market and can advise you against the pitfalls to ensure you maximise your buy-to-let revenue. When you let and manage a property there are additional costs to consider on top of the monthly mortgage repayments. As a guide, you should be aiming to achieve a gross rent of about 135% of the rental property’s interest only mortgage repayments, in order to cover contingencies. Additional costs include:
Property upkeep – maintenance costs for the property.
Letting agency fees – letting agents charge approximately 10% of the monthly rent for finding and vetting tenants, plus an additional 5% if you require a full management service.
Ground rent / service charges – applicable to leasehold properties.
Landlords insurance – to cover accidental damage and potential legal costs involved to evict tenants in the event of non-payment. This is very important as eviction can be a very expensive process. Read more
Building insurance and contents insurance – required for the items provided as part of the rental agreement.
Furnishings – costs of purchasing of any furniture, if the property is to be let furnished.
Gas / electrical appliances – cost of maintaining appliances and ensuring they comply with safety regulation tests.
Decorating costs – the property may require decorating work before it is suitable for letting to tenants, especially between tenancy agreements.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Commercial mortgages and buy to let mortgages are not regulated by the FCA.