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| With
the current volatility of the UK pension market, managing your own portfolio of
properties can be an attractive proposition. Over the long term property has historically
been a very safe investment decision, however you should not rely on past performance
as a guide to the future performance.We can help you way up all the risks associated
with this market. |
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| Lenders view
buying property that you will rent as an investment, this means that they apply
different criteria when assessing your application to those used for residential
mortgages. |
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| The
Buy-to-Let market is developing very rapidly but the following is an idea of what
a Lender may expect: |
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They
will frequently ask that your tenants sign an Assured Shorthold Tenancy greement.
This is renewable every 6 months (rather than 12 or 18) and protects you in the
event that you have unreliable tenants.
Many lenders (although not all) will
evaluate affordability by comparing the rental income to cost of the mortgage.
They will want to see that the rent received for the property will exceed the
mortgage payments by a comfortable margin (eg. Rent = 120% x £ interest-only
mortgage payment).
No reference schemes, which don’t require you to
prove the rental income, are available however they generally cost more.
Lenders will usually have some kind of limit regarding the number of properties
you can own (eg. 10) or the maximum overall value of your property portfolio.
(eg. £1M).
Be realistic - you are likely to have to supply a deposit
of 15% or more, especially if you want the most competitive rates. When deals
sound too good to be true they usually are.
Buy to Let interest rates are
generally slightly higher than those for residential mortgages because of the
risk involved in renting property out – although this gap IS closing fast.
At MORTGAGES 4 U LTD you can still get a buy to let mortgage if you have
had credit problems in the past. |
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Remortgaging an Existing Buy-to-Let Property |
| You should
evaluate the mortgage market regularly to maximise the return on your property
investment. |
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MORTGAGES 4 U LTD will help
you consider ways of maximising your property port folio which may be enable you
to save money or raise a deposit for another investment property. |
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Do I Qualify? |
| MORTGAGES
4 U LTD can help people with a wide range of personal circumstances but our main
focus is on helping people with credit problems and trouble proving their income.
For more specific
details on the kinds of circumstances and credit problems we cater for at MORTGAGES
4 U LTD, please visit our Do I Qualify? section or enquire now. |
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Important Note |
| Investment
mortgage products are not regulated by the Financial Service Authority. Here at
MORTGAGES 4 U LTD we apply the same principles of treating customers fairly to
non regulated activities including our buy to let client. |
