Struggling to find the best buy-to-let mortgage in York? speak to one of our buy to let mortgage advisers today
The term ‘buy to let‘ generally refers to either the practice of buying a property to be let for profit or to the type of mortgages used to purchase a property for such letting. Many countries, both in the western world and in the developing nations, have seen a surge in the growth of the buy to let property market in the last 2 decades and this has fuelled a growth in amateur landlords and the but to let mortgage providers who are keen to encourage and profit from them in turn. In addition, this growth has generated a lot of commerce in other related sectors such as buy to let insurance.
How To Find The Best Buy To Let Mortgage For Your Investment Property | Real Estate Investing Tips
Many countries, both in the western world and in the developing nations, have seen a surge in the growth of the buy to let property market in York the last 2 decades and this has fuelled a growth in amateur landlords looking for quality mortgage advice, this is why mortgage brokers in York who specialise in Buy-to-let are so important and the but to let mortgage providers who are keen to encourage and profit from them in turn. In addition, this growth has generated a lot of commerce in other related sectors such as buy to let insurance.
York Buy to let mortgages have been available in the UK since the mid-nineties and they are specifically designed for investors to borrow money to purchase property in the private rental sector. The amount that a prospective but to let investor can borrow is generally determined by the rental valuation of the property. The annual income for a rented property has to cover a certain percentage of the mortgage repayments, the Association of Residential Letting Agents (ARLA) states that landlords should seek to be able to obtain gross rent returns equivalent to between 130 per cent and 150 per cent of the rental property’s mortgage repayments, this takes into account the surplus rent to cover costs of property maintenance and slack periods when the property may be vacant of tenants.
York Buy To Let Mortgages.
Some buy to let mortgage lenders in York will lend you a maximum sum based on a multiple of your salary (usually a multiple of three) plus a percentage of the forecast rental income on the property. So if your annual salary is said 30,000 Franks and the forecast rental income is 10,000 Franks they will lend you 95,000 Franks. Other mortgages, in addition to factoring in your salary, will include any existing loan commitments you have, and then apply what is known as the ‘deduction rule’. This rule relates to the annual mortgage payments worked out at a pre-set level of interest.
Buy to let mortgage interest rates are generally fairly close to residential mortgage rates but will generally be slightly higher and typically charge higher fees. This is due to the fact that buy to let loans are considered by the financial sector to represent a greater risk than residential owner-occupier mortgages, and they generally are.
The Situation in the UK About Buy To Lets
The buy to let market literally ‘exploded’ in the York around the beginning of the millennium with rising property prices and the increasing availability of buy to let funding fueling a surge in would-be investors trying to cash in on the trend of the market. One reason for their popularity is the tax advantages that are available to the UK buy to let investors. Rental income is treated just like a salary by the Inland Revenue, and is therefore often taxed at 22% or even 40%. However, landlords are allowed to deduct costs from the taxable portion of their rental income, and these costs can include the interest of the buy to let mortgage repayments as well as maintenance costs on the property. These tax incentives made the buy to let market very attractive for both professional investors and amateurs looking to make the most out of their savings.
Would-Be Buy-to-let Investors
The market peaked around 2007 and now the market is saturated in many areas across the country with too many properties available to tenants. While buy to let is generally not a good idea for people who do not possess some extra budget there are a lot of remortgage deals which will fund a deposit for a home. If you are worried about losing money during void periods many companies will provide insurance which can deliver as much as six months mortgage payments in the event of a property in York remaining unoccupied.
You may still be lucky, and find a hotspot but you need to do your homework and the figures correctly. Buy to let trends differ from town to town and literally from street to street. Good advice for potential investors is to visit the local letting agents who should be able to tell you who is renting what at the moment so you can define your target audience. It could be students, young professionals or families, for example. Look for areas that do have a shortage of properties and for indicators that people will move there, such as new business developments.
Buy to let mortgage deals are still rife and the rates are almost as competitive as with conventional deals. The mantra with your buy-to-let must be ‘don’t expect to get rich quickly’. You need to look long-term: an absolute minimum of five years – but probably nearer to ten years.
Hello, I’m just calling to find out moreabout your new attractive interest rates on your buy to let mortgages.
No I don’t.
Ok, ok thanks for your time.
When you are thinking about buying an investmentproperty, the mortgage is one of the most important considerations.
If you would liketo know my recommended method for finding the best mortgage for your property investment,then stay tuned as I explain how.
Hello, I’m Andy Walker from monoperty.
Com,where I blog online about my journey as a property investor and landlord, sharing whatworks for me and what doesn’t, to help you start or expand your property portfolio.
Now, there are plenty of banks and mortgagelenders out there who all have hundreds of mortgage products offering different interestrates, terms and fees, resulting in thousands of mortgages for you to choose from.
When I first started, I looked at online comparisontools to find the cheapest product which I thought would match my needs.
After hoursof research, comparing interest rates and application fees, I then discovered that eachproduct has it’s own requirements and eligibility criteria once you start the application process.
These included the household income, whether I had any other investment properties anda whole host of other factors.
It wasn’t easy and it took a lot of time.
So to save you time, here is what I recommend.
Find a mortgage broker.
Simple you might be thinking, but no, hold on, don’t pick upthe phone just yet.
I wouldn’t recommend any mortgage broker, I’d recommend you finda broker with these 2 qualities: Firstly, someone who specialises in Buy ToLet products and not residential or a mixture of both.
Why? Because as I’ve already mentioned,it’s a huge market out there and only the brokers that deal specifically deal with BTL productswill have the best knowledge.
They have direct contact with the lenders and have vast amountsof experience with their lenders eligibility criteria.
Within a few minutes of asking yousome key questions, a broker will be able to match you to suitable lenders, and withinjust a few days, they will be able to provide you with some mortgage products for you tochoose from.
You also want to find a broker who’s aninvestor themselves because they’ll have a better understanding of your plan and whatyou are trying to achieve.
I’ve used 3 brokers in the last couple of years, 1 wasn’t aninvestor and 2 were.
The service I received form the 2 that were investors, was far betterthan the one who wasn’t, and not only did they provide me with a product that best suitedmy needs, but they also shared some sound investment advice about the properties thatI was buying.
A mortgage broker will receive a commissionfrom the lender for selling you their product and the broker may also charge you a fee.
But don’t let this put you off because mortgage brokers work hard, and they check all thepaperwork to avoid any delays with the application.
All correspondence between you and your brokercan be sent via email, which makes it super convenient to find a broker anywhere in thecountry.
My broker fees are paid once the lender has released their funds and the propertyis in my name.
I know there some brokers charge a fee upfront, but that has always put meoff, and I haven’t used them.
So how do you find a broker with these qualities?Well, there are several ways and they are typically places where investors are found;Property Auctions, Property Network Meetings, and Social Media Platforms.
Facebook groupsare good for connecting with the right people who have backing from some of the group members.
I hope you found this video useful and ifyou have any recommendations on how to find a good mortgage broker, then please leavea comment in the box below or head over to monoperty.
Please like and sharethis video, and if you are visiting for the first time, please subscribe so you don’tmiss any of my future videos that are all be geared towards helping you start or expandyour property business.
Thank you for watching, keep up the good work, and I’ll see youin the next one.
Bye for now!.
FAQs on Ltd Co borrowing for buy to let
Welcome to MFB-TV on Wednesday 14th January.
as is our first broadcast of the year let mewish you much prosperity and success in the year ahead we think you'll be an excitinginnovative and productive year for all aspects ofthe property market and especially the financing there of.
So let's start off first of all with our Complex Buy to Let index resultsfrom the last quarter of 2014 that is available on our website today.
Inparticular I draw your attention to the fact there are now over 800 buy to let mortgage productsout there giving plenty of choice and variety for landlords of all types and needs.
We include now a new lender Fleet Mortgages who have just launched in the marketperhaps better known as the old management team from CHL Mortgage's of yesteryear.
and we are one of six appointed distributors at outset.
remortgaging continues to outstrippurchase activity but actual transaction numbers have goneup in both sectors yields yet again have increased for thevanilla HMO and more complex property typesbut interestingly enough many of you seem too boring slightly less withaverage loan to values coming down across all sectors it doesn't mean you can't borrow moreis just a conscious decision you appear to be making it's a mixed bag for loan amounts acrossall the property types so do dip into the report that's available on the websitetoday now in product news today is the launchof the first 10-year fixed-rate in the buy to let space for some timecoming out to those industry stalwarts at the mortgage works is the headlinerate of 4.
99 percent and a flat arrangement fee of £995 but with some quite eye watering ERC's so by the time you get this news itemour Sales director Steve Olejnik will have published a blog highlights the pros and cons of such anarrangement but it is innovation and well done tothe team down at The Mortgage Works for leading the field so our rate of this week is actually out of Fleet Mortgages with anew product range which is at sixty-five percent loan to valuewhich does seem too suit he lower borrowing parameter that some of you are acting to a two-year fixed at an eye wateringor a very low eye watering 2.
79 percent it's available for purchase and remortgages andis as available to individuals they also have some very good limitedcompany products albeit at a slightly higher rate a slightly higher arrangement fee this onehas a fee of 1 percent it's available on ex local authorityhouses multi-units, leasholds and free holdconversions showing flexibility in the property categories that some other lenders don't choose tooffer.
You don't have to be limited by a maximum number of properties inthe background and while they have an income threshold£25,000 that can be drawn from property and canbe on untaxed property income there is an ERC as you'd expect with such alower rate of 5 percent in the period and this runs until the28th of February 2017 so it's a fixed rate period regards to when you draw it down.
For details of that product, TMW and the whole Fleet product range dospeak to our consultants on 0845 345 6788.