We Provide Best Buy-to-let Mortgages
Everyone needs a unique buy-to-let mortgage based on his or her circumstances. Suitable bargains are hard to come by, which is where Mortgage Advisers 365 comes in.
We will listen to your rental objectives and situation before providing you with the finest buy-to-let financing offers.
What’s more? We offer a complete guide to ward off all ambiguities in your mind!
Why should you have a Buy-To-Let Mortgage?
A buy-to-let mortgage is essential if you plan on renting a property after buying it.
If you intend to rent it out for a short period, your property may not need to be a buy-to-let mortgage as long as you have the consent of the property lender.
How much do Buy-To-Let Mortgages cost?
The prices of Buy-To-Let Mortgages are not the same as residential ones. They cost more because:
- They have a higher interest rate
- Lenders charge more for them
- A minimum deposit of 25% is required
Buy-to-let expenses will have:
Depending on the rank of lenders and the property mortgage you are purchasing, the initial deposit may vary. You may be required to initially deposit 25% (75% loan to value), 20% (80% loan to value), or sometimes 15% (85% loan to value).
If you are a first-time buyer of a buy-to-let mortgage, you will pay the standard stamp duty rate of a home mover.
If you have bought a property before, a 3% extra will be charged in your next stamp duty.
However, there are a few properties that do not require you to pay the stamp duty charges. These include caravans, mobile homes, houseboats, and anything similar.
- Lender’s fees
- Legal fees
- Survey fees
- Mortgage broker fees (if applicable)
The tax applies to whatever you receive from the rental payment on your Buy-to-Let property. You declare that income on a Self-Assessment tax return.
Other than that, you have to pay the stamp duty land tax and the capital gains tax in case you sell the buy-to-let mortgage property for more than you originally bought it for.
How Can YOU Earn through a Buy-To-Let?
We know how hard it has become to earn a profit through a buy-to-let mortgage attributed to the high taxes. Mortgage advisors 365 is here to advise you on how to make a profit through this mortgage.
- You can sell your buy-to-let property once its value rises.
- You can increase the rent when local rents increase.
- Buy a property in a promising area
Other than your salary and expected rental income, a lender may ask you to provide:
- The price of your desired property to see if the property is worth lending.
- Your age to see if you are legal to buy a property.
- Property demand.
Calculate your borrowing:
Make sure you afford the property by calculating the expenses that come with owning a buy-to-let property. Alongside monthly mortgage payments, prepare a budget for:
- Landlord assurance
- Fees of the letting agency
- Credit checks
- Health and safety checks
What Types of Buy-To-Let Mortgages are there?
This mortgage allows you a fixed mortgage of 2-15 years during which your monthly repayments and interest rates will not change. After the fixed term, you may either re-fix your mortgages or switch to the standard rate of interest provided by your lender.
Discount variable rate mortgages
This type of mortgage is linked to the standard variable rate of your lender with a discount. The fluctuation of the variable rate will not affect this standard rate.
This mortgage sets the rate of interest above the variable rate, according to the marked-up rate of the Bank of England, which is currently at its lowest (0.10%). Fluctuation in this rate will fluctuate your mortgage accordingly.
Interest-only buy-to-let mortgages
This type of mortgage allows you to pay the interest each month and not the capital amount. This will lower your monthly interest payments than any fixed rate repayments. However, the entire loan balance is to be paid at the end of a mortgage term.
Advice to Buy-To-Let Landlords
Here are a few things you must know before buying a buy-to-let mortgage
Managing costs and expenses
Some of these will be
- Property insurance
- Tenant deposit insurance
- Tenant checks
- Gas and Electricity checks
- Maintenance costs
Tenancy types and terms
Know if your tenant is short-term or long-term. Try renting to long-term tenants to make a profit.
Understand your responsibilities
Make sure the property is properly maintained and is in the best condition to be rented.
Comparing The Mortgage Deals
We advise you to contact our team of Mortgage Advisers365 to get the best advice on mortgage deals in the market.
We will do a comparison of the mortgage deals and advise you on the best deals accordingly!