Buy To Let

Buy to let mortgages have a number of key differences to mortgages for your own home. Firstly they are normally offered on the strength of the rental income projected for the investment property that you would like to buy, rather than upon your level of income personally.

Whilst most buy to let mortgages do have a minimum income requirement this is normally very low and the level of rental income compared to the monthly cost of the mortgage is far more important to the lender than your income. 

For example a typical buy to let mortgage requires that the projected rental income per month should be around 125% more than the mortgage costs per month. If the mortgage you require for a property will cost you £600 per month then the rental income per month should be at least 25% more than this, or £750 per month. This allows for management costs, service charges on apartments and any possible voids (gaps between tenants) so that even after reasonable levels of these costs you should still break even.

Although there is no guarantee that it will be possible to arrange continuous letting of a property, nor that the rental income will cover the cost of the mortgage many people are finding buy-to-lets a valuable asset to their financial portfolio.

BMV

BMV or below market value properties are a popular way of aquiring investments properties with little or no cash provided on the part of the buyer. They work by utilising the equity in the BMV property to obtain a buy to let mortgage with a reduced cash deposit. This system often involves bridging finance to buy the property in the first instance. Please call us for more details.

LTV

LTV or loan to value ratio is the phrase used to decribe the loan amount as a percentage in respect of the properties open market value. Most buy to let lenders will not lend over 75% of a properties value in the current market.

As independent mortgage brokers we have access to the whole mortgage market, which means getting you the best rate for your circumstances.

 Please note buy to let mortgages are not regulated by the Financial Services Authority.

Your property may be repossessed if you do not keep up repayments on your mortgage

Coleman Clough Mortgages is an appointed representative of Coleman Clough Independent Financial Advisors Limited which is authorised and regulated by the Financial Services Authority.Initial advice is free.Typically we charge £395 for advising on arranging your mortgage but fee of up to 1% of the loan may be charged depending on your circumstances.

Coleman Clough Independent Financial Advisors Limited, The New Barn, Home Farm, The Avenue, Esholt, West Yorkshire, BD17 7RH