This is a mortgage for property that will be let by the borrower to other tenants. When lenders calculate how much you could borrow on this type of mortgage they do so primarily on the basis of projected rental income, rather than salary income multiples.
We can help both experienced portfolio property investors and those new to the buy to let market. Remember there are some crucial differences between buying a house to let out and one to live in.
Take a look at this weeks best Buy To Let products and also our Key points to remember below:
The following sample will give you an indication of the best rates available for Buy to Let at the present time:
| Provider | Mortgage Type | Initial Rate | Duration | Subsequent Rate | APR | ERCP** | |
|---|---|---|---|---|---|---|---|
| The Mortgage Works | Tracker | 3.29% | 12 | 4.69% | 5.1% | 0 | Enquire |
| The Mortgage Works | Tracker | 3.69% | 18 | 4.69% | 5.1% | 18 | Enquire |
| The Mortgage Works | Tracker | 3.74% | 24 | 4.69% | 5.1% | 24 | Enquire |
| Woolwich | Lifetime Tracker | 3.99% | 0 | 4.3% | 36 | Enquire | |
| The Mortgage Works | Fixed rate | 3.29% | 12 | 4.69% | 5.1% | 12 | Enquire |
| The Mortgage Works | Fixed rate | 4.19% | 18 | 4.69% | 5.2% | 18 | Enquire |
| Whiteaway Laidlaw Bank | Fixed rate | 4.69% | 24 | 6.00% | 6.3% | 24 | Enquire |
| Whiteaway Laidlaw Bank | Fixed rate | 4.94% | 36 | 6.00% | 6.2% | 36 | Enquire |
Please Note:
** Early Repayment Charge Period
Get advice from agents with local knowledge so that you pick properties at not only the right asking price but also have the best rental yield.
Remember – there is no quick fix. You should be aware that any return is long term.
Make sure that your calculations on future rental income take into account periods when the property may be empty between lets. Have you adequate resource to meet commitments during any of these periods.
Make sure that your legal responsibilities are covered by a proper legal agreement - usually by an Assured Shorthold Tenancy (AST) agreement. This protects you and ensures that you can recover possession at the end of the rental term.
You will need to protect the tenants deposit via the Tenancy Deposit Scheme.
From 1st October you will need to provide prospective tenants with an Energy Performance Certificate.
Make sure that you seek proper legal advice on the many tax issues surrounding buy to let.
See our FAQs page for more advice on Buy to Let mortgages