Buy to Let Experts
We can help you build your property portfolio
- No Up-Front Broker Fees
- Impartial Advice
- Access To A Panel Of over 90 Lenders
- We make sure you qualify for any deal before you apply
- Straight talking, no jargon service
- Covering all of the UK
THE FINANCIAL CONDUCT AUTHORITY DO NOT REGULATE SOME FORMS OF BUY TO LET.
YOUR HOME MAY BE REPOSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE.
There may be a fee for mortgage advice. The precise amount will depend on your circumstances and will be agreed with you before proceeding but estimate this to be £1000 (£250 on application and a further £750 at offer).
Completing our form does not affect your credit rating
Complete our quick online form for a FREE quote or call us on 01256 327019
Completing our form does not affect your credit rating
For a FREE MORTGAGE QUOTE please complete our quick online form or call 01256 327019.
Who We Work With
We have the privilege to access an exhaustive panel of lenders including high street and expert lenders. Our strong business relationships equip us to cater for all types of client requirements. Whilst servicing Fist Time Buyers, Home Mover’s and Remortgage clients we also cater for Government schemes like shared ownership, and expert mortgages like adverse credit and Limited Company Buy to let’s.
What is a Buy to Let Mortgage?
A buy-to-let mortgage is a mortgage designed for people who buy property as an investment, rent it out and profit from it. When you buy a property as an investment, most lenders will not allow you to fund your purchase with a normal residential mortgage. Instead, you will need a buy-to-let mortgage.
Most buy to let mortgages are provided on an interest only basis, which means that, each month during the term of the mortgage you only pay the interest on the loan. None of the capital is paid so the advantage is that you can keep your monthly outgoings to minimum. However, it is imperative that you plan your ‘exit strategy’ to either pay off the loan or refinance at the end of the mortgage term.
The rules surrounding buy-to-let mortgages can be a bit of a minefield, our expert buy to let advisors are ready to guide you through the process and ensure that you get the best deal for your individual needs and preferences.
4 Steps To Arrange Your Mortgage
- Get in touch with us. We will ask you a few questions to see if we can secure a mortgage for you.
- We search the mortgage market and get you competitive rates.
- We make your mortgage application and sort out the paperwork (we will provide the Decision in Principle to you).
- Complete your mortgage.We will be with you every step of the way and see things through to completion.
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How Do Buy to Let Mortgages Work?
Mortgage providers generally deem buy to let mortgages as a higher risk than a residential mortgage because there is no guarantee that that the property will always be rented to cover the mortgage costs.
Very often, buy to let mortgages are on an interest-only basis therefore when the mortgage comes to an end, you will have the option to sell the property to cover the full cost and this is your opportunity to make your profit. If your property price has risen, selling the property for more than the total cost of the mortgage will give you extra money which is your profit!
Finding the most appropriate buy to let mortgage can certainly be daunting. As buy to let mortgage experts, we will take all of your individual circumstances into account and advise you what mortgages you can apply for and explain how much lenders will potentially lend you. Having a huge panel of providers, we will also be able to find you the competitive rates helping you make the most of your investment.
How much can I borrow?
Mortgage providers generally ask for a larger deposit on a buy to let property which can quite often range between 20% and 40%. The larger the deposit you put down, the better rates you are likely to benefit from. Lenders use interest cover ratios (ICRs) to calculate how much profit a landlord is likely to make, ICR is the ratio to which a property’s rental income covers the mortgage payments, tested at a representative interest rate (most banks currently use 5.5%). Most lenders expect the projected rental income to be at least 125% of the landlord’s mortgage payments, and some impose higher levels of around 145%.
It is common for lenders to check similar properties in your area to establish the rental demand. If you receive a high salary, some lenders will take this into consideration and lower their ICR requirements. This is on the basis that you could cover any rental shortfalls from your own income.
If you are an existing portfolio landlord and let our four or more properties, lenders will assess how each one of your properties is performing and take this into account for affordability purposes. HLSA Financial Services are able to offer you an excellent range of buy to let mortgage deals with options for landlords with low deposit.
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Buy to Let Tips
- Widen your search – Don’t make the mistake in thinking you have to buy a property to let in your home- town. You may find other areas with better rental yields.
- Pick a property easily maintainable- Consider how likely a property is to require ongoing repairs and improvements. It may be worth staying clear of older properties as they may be expensive to maintain and eat into your profits.
- Research tenant demand – Pick a property within a reasonable distance of schools, shops, restaurants, bus and train links – This will always be appealing to prospective tenants.
- Type of Property- Think about the types of property that are likely to appeal to the largest possible audience.
- Tax rules- make sure you are up to date with the latest taxation criteria.
- Research Insurances- You will need to have buildings and contents insurance for a buy to let property also known as ‘landlords/property owners’ insurance’. You could also purchase an insurance policy to cover your rental income if your tenant doesn’t pay.
- Make it legal- Make sure you obtain a signed tenancy agreement before the tenants move into the property, otherwise they may acquire rights that neither of you intended. For example, you may find that it is close to impossible to ensure your tenant vacates the property, even if they are not paying you the rent due.
- Get the right mortgage- Mortgages for a for a buy to let property are different from residential mortgages.
At HLSA Financial Services we specialize in buy to let mortgages, taking the burden off our clients and walking them through the process from start to finish. We are experts in helping customers build and grow their property portfolios.