Buy To Let Mortgages Gravesend & Kent
Thameside Mortgages can help to secure the best deal for buy to let mortgages in Gravesend, Kent, and the surrounding areas to provide maximum return on investment.
Whether you are an experienced BTL investor, purchasing your first BTL, or considering letting out your main residence to purchase a new one, we are highly experienced in arranging these types of mortgages.
Whether you are looking for an additional income source, or capital growth, recently introduced regulation has tightened up lending criteria, with more lenders needing a greater rental income coverage than they ever used to.
Please be aware that from 6 April 2016 higher rates of Stamp Duty Land Tax are applied to the purchase of additional residential and non-residential properties. For further information visit the Government Website.
What Are The Steps Involved?
We have access to a comprehensive range of mortgage lenders, all of which have vastly differing criteria. Therefore, it is important that you use a company that can research all of the options to find the right mortgage product based on your needs and requirements.
We usually arrange a chat with you over the phone initially and help you understand the amounts you can borrow, costs of buying a property and the likely monthly payments.
We will summarise our entire conversation to you by email and explain the next steps in terms of helping you obtain a mortgage.
Once we have all the necessary information, we can obtain an AIP (Agreement in Principle) which you can use to show estate agents, evidencing your ability to obtain a mortgage. We are more than happy for you to provide our contact details to the agent, should they need your offer to be ‘financially qualified’.
Once you have an offer we will help secure the right mortgage deal based on your needs and requirements and liaise with the estate agent, mortgage lender, solicitor, surveyor and all associated parties to ensure that the mortgage offer is issued as quickly as possible. We will also help you with all the legal forms that need to be completed and guide you right through to getting the keys to your BTL Property.
A mortgage is a loan secured against your property. Your property may be repossessed if you do not keep up repayments on your mortgage.
The Financial Conduct Authority does not regulate most forms of buy to let mortgage
Buy-To-Let Mortgages – FAQs
What are buy-to-let mortgages?
Buy-to-let (BTL) mortgages are also known as investment mortgages. They are a type of mortgage for landlords who are looking to buy property to rent out, rather than a residential mortgage you’ll live in. Buy-to-let properties come in all shapes and sizes, including houses and flats, and much like home residential mortgages, there are multiple mortgage types to select from including fixed-rate mortgages and variable-rate mortgages.
How do buy-to-let mortgages work?
Although buy-to-let mortgages differ from standard mortgages, there are similarities. The vast majority of buy-to-let mortgages are interest-only and the fees are typically higher than your standard mortgage. However, choosing between a repayment and an interest-only mortgage is dependent on the needs and circumstances of each individual. Another major difference between buy-to-let and residential mortgages are the deposit amount as you’d typically need at least a 25% deposit for a BTL.
How many buy-to-let mortgages can I have?
This is one of the most commonly asked questions we get regarding buy-to-let mortgages – often by landlords looking to expand their property portfolio. There is no limit to how many buy-to-let mortgages you can have, subject to your individual circumstances. However, each lender has their own set criteria and exposure limits. If you’re unsure, please get in touch with Thameside Mortgages today.
Why are buy-to-let mortgages interest-only?
One of the reasons people choose interest only, is that it can help with manging the finances of the property. No one likes to think a tenant might stop paying their rent, or that the property might be vacant, but if one of these situations did occur, you’d have to pay the full mortgage payment without rent coming in. Some clients prefer the cost of an interest-only mortgage as it allows them to build up a buffer to cover any additional costs associated with renting a property, such as minor refurbishments.
How are buy-to-let mortgages calculated?
There are two main ways in which affordability is calculated for buy to let (BTL) mortgages. The most widely used method is assessing the amount of rent the property will receive per month. A mortgage lender will apply a series of stress testing to determine how much someone could borrow. There are so many factors that will determine how much you can borrow, such as the length of a fixed rate
mortgage and your tax status i.e. Basic or Higher.
Additionally, some lenders will use your earned income and personal liabilities into account when assessing the amount you can borrow. It’s a little complex when establishing how much you can borrow so we recommend you seek advice from a broker.
How much deposit for buy-to-let mortgages?
Another great question that is commonly asked by our clients. The deposit amount for a buy-to-let mortgage will vary depending on individual circumstances, how much money you can borrow, and also the value of the property you’re looking to purchase. However, as an estimate, you are likely to need to put down a minimum of a 25% deposit to obtain a buy-to-let mortgage on your chosen property.
However, depending on your particular situation and circumstances it could be possible with a lower deposit, such as 20%.
Buy-to-let mortgages - how much can I borrow?
The amount of capital you can borrow is usually directly related to the amount of rental income you expect to receive from the property. Fundamentally, your lender will want to ensure that your rental income will cover the mortgage payment plus extra for peace of mind. It may be the case that the rental valuation of the property is not high enough and you need a larger deposit for affordability to meet.
Some lenders will also allow you to top up any shortfall using your earned income too, but it’s always dependent on your individual circumstances.
How long are buy-to-let mortgages?
Buy-to-let mortgages are likely to be for between 2-5 years, but some lenders offer 10-year fixed-rate mortgages too. A fixed-rate would offer the stability of payments for a period of time, allowing you to budget a little more, but deciding on a fixed or variable rate is dependent on your individual needs and circumstances.