Buy To Let

A buy to let mortgage is a loan for someone who purchases a residential property with a view to renting it out as an investment.

Lenders view Buy To Let as a greater financial risk because immediate vacant possession is not always guaranteed. Therefore mortgage lenders tend to:

• Ask for bigger deposits, usually 20%
• Charge a higher rate of interest
• Require the rental income to be greater than the interest element of the monthly payment.
• Usually charge higher mortgage arrangement fees or slightly higher rates

2011 and beyond is expected to see an increase in Buy to Let lending as demand is increasing. Rental yields are improving; and student applications across the UK are increasing (as many students tend to rent). In some areas of the UK, letting agents are reporting a shortage of supply; as four to five sets of tenants are vying for the same property.

Mortgage lenders tend to require the rental incomes (normally carried out by a surveyor) to be greater than the monthly payment. If below, further evidence of income is required to cover any shortfall. Some mortgage lenders are happy with the same. Please speak to one of our mortgage brokers for more information. Also first time landlords may require larger deposits.

Buy to Let mortgages are typically not regulated by the Financial Service Authority.

If you require buy to let mortgage advice; please submit your details above and one of our mortgage brokers will call you. We Know Mortgages Ltd have access to thousands of mortgage products across the high street and building societies. We’ll guide you through the mortgage process from start to finish. We are based in Manchester city centre.