Whether you’re thinking about purchasing your first Buy to Let property or adding to your existing portfolio, Millerson Mortgages can help.
Securing the right Buy to Let mortgage has never been more important when looking to maximise your potential profit, so why not let us assist with your Buy To Let mortgage?
Over the last few years, there have been many changes in the Buy to Let market which have made being a landlord even more difficult. Changes in tax relief have meant that it’s even more pertinent that you have the best mortgage interest rate. With access to the whole of the UK market and many exclusive rates, Millerson Mortgages will ensure that you achieve the best rate available to you.
The introduction of the Additional Rate Stamp Duty has added a further expense to purchasing your next investment property and this is something you will need to consider. This coupled with your required deposit (typically 25% of the property value) can make purchasing a Buy to Let property expensive; however your qualified advisor will discuss the option of applying for your mortgage in your own name or through a Limited Company (you should seek tax advice from an expert to calculate the best option for your circumstances).
The introduction of further affordability restrictions in the Buy To Let mortgage market has meant that some clients are finding remortgaging more difficult than in previous years. At Millerson Mortgages, we have long-standing agreements with lenders and we know which lenders are best to consider for your individual circumstances, we may even have access to exclusive rates with your existing lender, meaning that we could save you money on your current mortgage without even having to move your mortgage to another lender. For more information on this and advice on how to achieve a competitive return on your investment, contact us here
Things to consider when purchasing a Buy to Let property:
- Rent Potential – the decision as to whether or not a mortgage will be offered is usually based on the rent you will earn and in most cases your personal income is not even considered (Typically a lender will want your rent to cover at least 125% of the mortgage repayment)
- Interest Rate – Buy to Let mortgages have slightly higher interest rates than residential mortgages
- Larger Deposit – typically a minimum of 25% of the property’s value is required as a deposit
- Interest Only verses Capital Repayment mortgages – this will depend on what you are looking to achieve from your investment, i.e. are you looking to make a profit each month or are you looking to make a larger profit when selling the property in years to come?
- Additional costs
- Property upkeep – maintenance costs for the property
- Letting agent’s fees – these are usually around 10% of the monthly rent
- Legal insurance – to cover the cost of evicting tenants in the event of non-payment
- Buildings Insurance – this is normally a condition of your mortgage
- Furnishings – the purchase of any furniture. If the property is to be let furnished, make sure you are covered for this by your home insurance
- Gas / electrical appliances – cost of maintaining appliances and ensuring they comply with any regulations such as safety tests
- Decorating costs – the property may require work before it is suitable to let
*Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority