Buy to Let Mortgages

Expert Advice For Buy to Let Mortgage Seekers

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Are you considering buying property that you intend to rent out to residential tenants for a profit? Are you planning on securing a buy to let mortgage?

When considering a buy to let mortgage there is a lot to take into account, especially if you plan on renting out the property to a third party. At Bespoke Home Finance, we are here to help you with all stages of the process.

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What Is the Criteria for a Buy to Let Mortgage?

Firstly, finding the right buy to let mortgage can be confusing as each lender has a different set of criteria. There are many variables surrounding the buy to let criteria such as:

- Income and affordability
- Credit score
- Deposit amount
- Age
- Employment status
- Location

Other requirements to note include the fact that most buy to let mortgage lenders require applicants to be permanent UK residents or citizens due to expats being deemed as high risk because they live overseas. Occasionally, some lenders will still lend to overseas applicants in cases where they are low risk.

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What Is the Affordability Criteria for a Buy to Let Mortgage?

Affordability for most mortgages is usually assessed by calculating your income against your outgoings. However, buy to let mortgage operate quite differently. With a buy to let mortgage, affordability is assessed by calculating whether your rental income will cover the costs of the buy to let mortgage. 

Nonetheless, there are lenders out there that require applicants to have a minimum income of £25,000 per annum whilst others do not require applicants to have an income. 

Lenders typically require your rental income to cover your mortgage by 125-145%. Even so, it’s important to note that all lenders operate differently and have different criteria for assessing how much they can lend for a buy to let mortgage. 

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Are There Any Age Restrictions When It Comes to a Buy to Let Mortgage?

The minimum age for being able to secure a buy to let mortgage is 18. However, most lenders typically require applicants to be at least 21 or even 25 in some cases. 

The maximum age for being able to secure a buy to let mortgage is usually 85, with some lenders only going up to 75. Whereas others do not have an age limit. 

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    Is a Buy to Let Mortgage Deposit the Same Amount as Other Mortgage Deposits?

     

    Typically, you will need a higher deposit amount for a buy to let mortgage in comparison to a residential mortgage. The rate for a buy to let mortgage deposit is usually 25%.

    This is due to the fact that most buy to let deals start at 75% loan to value. Some buy to let mortgage lenders may accept a 20% deposit, but that is normally applied to experienced landlords.

    If you have affordability issues or a low credit score, some buy to let mortgage lenders may require you to pay a higher deposit to lower their lending risk.

    Additionally, the same applies to those who are purchasing a property that needs extensive work or is of non-standard construction.

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    buy to let mortgage

    We aim to find you the best deal possible and we understand that everyone’s circumstances are different, but this investment can make a huge difference to you and your family. That is why we are here to help you with all the facts and information we have. Not only that, but you will be getting advice from mortgage experts with years of experience. 

    When looking at buy to let mortgage, they are generally between 1-2% higher interest rates. It’s also worth taking into consideration the potential rental income as this can affect the amount a lender is prepared to offer. 

    Despite the restrictions placed, you will, however, be eligible for a range of tax deductibles. For more information about our buy to let mortgages, speak to a member of the team today. 

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    Advice From Bespoke Home Finance

    If you are looking for trustworthy and professional advice to guide you every step of the way, then look no further than Bespoke Home Finance. 

    If you are looking to buy property to rent out to a third party and secure a buy to let mortgage, we are here to help. Call us today on 03301112477 or fill in a contact form. 

    We look forward to hearing from you and remember, there is no obligation or no high-pressure tactics on ours. Based in Scotland, we offer our mortgage services in Edinburgh, Glasgow, Scotland and all across the UK too!

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