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The short answer is that most people can obtain a Buy To Let mortgage. The majority of lenders however require that you already own an existing residential property (whether outright or with an outstanding mortgage) and have a minimum earned income (typically between £25,000 – £30,000). Age can also be a limiting factor. However, despite these typical requirements there are nearly always lenders that can accommodate even the most challenging scenarios.

We’ll handle every step for you, deal with all the paperwork and take away all the hassle. Here’s a quick overview of how the process works and how we will help you:

• We’ll talk to you in detail about your situation and budget to work out the maximum you can borrow. This will help make sure you’re looking for properties in the right price bracket.
• We’ll explain all the documentation we’ll need to put together to support your application.
• Once you’ve found a property, we’ll find your ideal mortgage and manage the application process for you.
• The lender then carries out a survey to assess the property, and their underwriter will review it all to confirm it’s affordable for you. This might include asking for a reference from your employer or accountant.
• Once the lender’s happy with all the checks, they’ll make a formal mortgage offer. Then we’ll help you complete the legal details and exchange contracts with the seller. We’ll be there to talk you through every single piece of paper so you don’t need to worry about a thing.

Regulations

We know the latest UK legislation and regulation inside out and can advise you on the detail of your mortgage requirements.

Affordability

Lenders typically calculate how much you can borrow by looking at the property’s value and the expected rental income. Plus, you’ll need to factor in hidden costs such as the property sometimes being empty, estate agent fees and maintenance costs. Lenders will ‘stress-test’ the mortgage to this effect.

Income

Typically, lenders require a minimum earned income of between £25,000 – £30,000.

Buy to Let Mortgages are normally available to those who already own a residential property or live in their own home, either with a mortgage or unencumbered. However, there are a select few lenders who are willing to lend to non-owner occupiers.

Buy to Let mortgages are also available to Limited Companies that are specifically created for the purpose of owning and renting property.

Typically, most lenders require a 25% deposit for a Buy to Let mortgage. It is possible with a lower deposit, however there are very few products available in this bracket and incentives begin to get much more competitive with a deposit of 25% or more if you can afford it.

Buying a property via a Limited Company can be a more tax efficient option for higher / upper rate tax payers, although interest rates and fees will typically be higher than what a lender would offer to a personal landlord.

Whether it ultimately works out cost effective for you depends on your income, mortgage rates, and fees, along with capital gains tax, inheritance tax and income from dividends. If you are unsure whether this is the right option for you, we recommend talking to a tax adviser or accountant.

An HMO (House in Multiple Occupation) is a house where at least 3 tenants live there, forming more than one household and owned by a private landlord. The property can either be let on one tenancy agreement which includes all the tenants, or each tenant can have its own AST agreement.

A Buy to Let mortgage is a mortgage that is secured on a property that is purchased for the sole purpose of being let out to tenants.

A Let To Buy is when you rent out your existing home and buy a new one to live in. You convert your existing mortgage to a Buy to Let mortgage so you can let out your current home, and then take out a standard residential mortgage on the home you’re buying.

Consent to let is an agreement between you and your residential mortgage lender, that grants you permission to rent out your home without having to re-mortgage onto a Buy to Let mortgage. Not all lenders offer this facility and those that do will normally only grant permission for a certain amount of time, commonly 6-12 months.

No, most BTL mortgages are not regulated by the Financial Conduct Authority.