Buy To Let
With a buy to let mortgage many lenders will base the amount of advance they are prepared to lend based upon the rental income that a property is expected to achieve.
The majority of lenders now tend to use a rental calculation based on the amount of the mortgage advance ie £100000 x 5.5% /12 x 145%= £664.58 (rental projection amount pm needed)
Some lenders will consider rental calculations at 125% rather than 145% if they can look at additional earned income
Please feel free to phone to discuss any questions that you may have
Before you purchase a property on a buy to let basis you should also consider the following
Area & Tenant
Area that you wish to buy in
Demand in the area for property
Type of tenant you will rent to ( council, students, professional)
Expected rental income from the property
You will need to check carefully that your proposed property, and that tenant is acceptable to your lender (as some lenders refuse to lend on ex council property, and / or DSS tenants).
Consider what type of deal you wish to have
Fixed, Discounted or Tracker
Do you want to repay your mortgage on a Capital and Interest basis or Interest only basis
Do you want to be able to make overpayments on your mortgage.
Other Matters to Consider
Allow yourself a surplus emergency fund as this will allow you to carry out any repairs or alterations to the property
Allow you a fund for periods when the property is not rented out (change of tenants)
Be aware of the tax implications of owning the property
If you require any assistance please contact us and we will be able to assist you with your enquiry.