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A buy to let mortgage is a type of home loan for buying property that you intend to rent out to tenants for a profit. Buy to let properties come in all shapes and sizes, from houses to apartments and everything in between. Unless you own a property outright, it is usually against your lender’s rules to rent it out without taking out a Buy to let mortgage.
Friends Capital have relationships with Buy to Let lenders We can help you find the best possible Buy to let mortgage. We will review your personal circumstances and then search the entire market to ensure you get the best Buy to let rates possible. We will then deal with all the paperwork, submit your application, liaise with your lender and solicitor, and ensure that your Buy to let application is completed as quickly as possible. We can:
A buy to let mortgage differs from a residential mortgage in that it is largely assessed on the property’s profitability, i.e. how much rent it can generate vs. the cost of the mortgage – rather than on your own personal financial circumstances.
Buy to let mortgage lenders require a higher deposit than a residential mortgage, typically 25% and have specific assessments they make on potential borrowers. It’s important to seek professional and unbiased advice when planning to take out a buy to let mortgage, whether this is your first property or will be an additional property in your portfolio.
Unlike a residential mortgage, where the amount you can borrow is based on your salary and your outgoings, the amount you can borrow on a buy to let mortgage is mainly based on the monthly rental you are getting or are likely to get. Lenders will typically need the rental income to be between 125% – 145% of the monthly mortgage payments.
You may decide to buy a new home, and rent out your current home. This is a process called ‘Let to Buy’. If you move out of the property you’re currently living in and intend to rent it out, you’ll need a Buy to Let mortgage. You could ask your current lender for their consent to let the property out. However, this may involve a fee or switching your mortgage to a higher rate. Not all lenders will allow this.
Friends Capital have relationships with buy to let mortgage lenders. We can search the entire market and get access to the best and most exclusive deals available. Then we will choose the deal that are most appropriate to your personal circumstance. We can:
One of our friendly advisors will either call you back within 24 hours (usually the same working day), or will take details from you in order to best deal with your situation.
When you speak with us, we will take a ‘fact find’. At this stage we take basic details about your situation. We will then search the whole of the market and find you the best deal available.
If you are happy with the deal that we offer, we will then contact the lender for you and get you what is called a ‘decision in principal’.
If you’re happy with the decision in principal then we will secure this deal for you and deal with the application for you on your behalf.