What is a Buy to Let mortgage?
A Buy to Let mortgage is designed for individuals looking to buy a property to rent out instead of living in it. Many buy to let mortgages are interest-only, meaning the monthly repayment will only pay off the interest, not the amount owed on the mortgage. Also known as capital, this will be paid off in full at the end of the agreed term.
What’s the difference between between a buy-to-let mortgage and a traditional option?
Unlike a traditional mortgage, Buy to Let mortgages usually have higher fees and interest rates. Furthermore, the minimum deposit is generally 25% of the property's value, but it can be between 20% and 40%.
How do Buy to Let mortgages work?
When it comes to a Buy to Let mortgage, the lender will usually be looking for a larger deposit than a regular mortgage. The maximum borrowing capacity will come down to the rental income the property is expected to generate, along with your own income and financial situation.
Am I eligible for a Buy to Let mortgage?
Lenders will consider a variety of factors to determine whether you are eligible for a Buy to Let mortgage. One of the factors they will look at is the type of property you're looking to buy as well as your age, as you will have to be between the ages of 21-75 years old. However, some lenders may let you buy beyond 75 years old.
Generally, lenders will primarily consider your affordability, the minimum deposit requirements, and your credit score.
I'm looking to apply for a Buy to Let mortgage - where do I start?
Firstly, you will need to find a property that you are looking to purchase.
Then, you will need to check your eligibility with the help of a knowledgeable mortgage advisor in Hull. Your dedicated advisor will not only assess your eligibility but also scour the market to secure the best deals for you and get your agreement in principle in place.
Once you have your agreement in principle, it's then time to make an offer on the property. When you have had your offer accepted, you can begin the full mortgage application process.
Speak to a Buy to Let mortgage advisor in Hull today
Here at Humba, we have experience working with landlords who are looking to expand their current portfolio or are beginning to start growing one. As a mortgage broker in Hull, we can help you with a variety of Buy to Let mortgages, including Buy to Let remortgage, HMO and holiday lets. Get in touch with our team today!
House in Multiple Occupations, Holiday Let & Some Buy to Let Mortgages are not regulated by the Financial Conduct Authority.
Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured to it.
