Mortgages inc. Buy To Let

Your home may be repossessed if you do not keep up with payments on your mortgage

Mortgage Services We Offer

Mortgages including Buy To Let

  • Purpose: Residential mortgages are for people who want to buy a property to live in, while buy-to-let mortgages are for people who want to buy a property to rent out.
  • Interest rates: Interest rates on residential mortgages are usually lower than those on buy-to-let mortgages.
  • Minimum deposit: The minimum deposit required for a residential mortgage is usually lower than that for a buy-to-let mortgage.
  • Lender requirements: For Buy-to-Let mortgages lenders normally require a deposit of 20-25%. You can however be a First Time Buyer as well as a First-Time Landlord. Plus some lenders require you to have a minimum income of say £30,000 ~ whilst others require no minimum income at all. You can also buy in one’s individual name or through a Limited Company. NB Independent Tax-Advice should be sought to determine the most appropriate option.
  • Risks: The risks associated with buy-to-let mortgages are higher than those associated with residential mortgages.

If you are considering buying a property to rent out, it is important to do your research and understand the risks involved. Whether a residential mortgage or a buy to let you should speak to a mortgage adviser to get advice on the best type of mortgage for your needs.

Please note: The FCA does not regulate Buy-to-Let mortgages

First Time Buyers

Here are some of the most popular types of mortgages for first time buyers in the UK:

  • Conventional mortgages: These are mortgages that are not backed by the government. They typically have higher interest rates than government-backed mortgages, but they offer more flexibility in terms of the terms and conditions.
  • Government-backed mortgages: These mortgages are backed by the government, which means that they are considered to be a lower risk. This can make it easier to get a mortgage with a lower deposit. Some popular government-backed mortgages for first time buyers include the Help to Buy scheme* and the Mortgage Guarantee Scheme.
  • Shared ownership mortgages: These mortgages allow you to buy a share of a property, typically 25% or 50%. You then pay rent on the remaining share of the property. This can be a good option if you don’t have a large deposit, as you only need to find a mortgage for the share of the property that you own.

If you are a first time buyer, it is important to do your research and compare different mortgage options before you apply for a mortgage. There are a number of different factors to consider, such as the interest rate, the term of the mortgage, and the monthly repayments. You should also make sure that you understand the terms and conditions of the mortgage before you sign anything.

*Good news the Help to Buy Wales scheme has been extended to the 31st March 2025 for of new-build homes

Remortgage

Remortgaging is when you switch your mortgage from one lender to another. This can be a good way to save money on your mortgage payments, or to get a better deal on your terms.

The remortgage process is similar to the process of buying a new home. You will need to get a mortgage offer from a new lender, instruct a solicitor to handle the legal paperwork, and pay any early repayment charges to your current lender.

It is important to do your research and compare different deals before you make a decision to remortgage. You should consider the interest rate, the length of the mortgage term, the type of mortgage, and the early repayment charges.

Here are some additional tips for remortgaging in the UK:

  • Get quotes from a few different lenders.
  • Compare the interest rates, fees, and terms of each deal.
  • Make sure you understand the early repayment charges.
  • Start the process early to avoid delays.
  • Use a mortgage broker to help you find the best deal.

Accidental Landlord

An accidental landlord is someone who becomes a landlord by chance or circumstance, rather than by choice. They may inherit property, need to relocate for work, or be unable to sell their home during a housing market downturn.

Additionally, if they have ever lived in the property the Buy-to-Let mortgage will be a Consumer Buy-to-Let. Please view/download the useful CBTL – Decision Tree to check your exact status

Accidental landlords often have little or no experience in property management, so they can face challenges such as finding and screening tenants, collecting rent, and dealing with repairs and maintenance. However, there are also some advantages to being an accidental landlord, such as generating income and building equity in your property.

If you are considering becoming an accidental landlord, it is important to do your research and understand the risks and responsibilities involved. You should also be prepared to invest time and effort into managing your property.

Here are some additional tips for accidental landlords:

  • Get professional advice.
  • Create a detailed rental agreement.
  • Keep good records.
  • Be responsive to tenants.
  • Take care of repairs promptly.

For help to ensure that your experience as an accidental landlord is a positive one get in touch.

Expat Mortgages

  • Expat mortgages are mortgages that are available to UK nationals who live and work outside of the UK.
  • Lenders view expats as being a higher risk, so the lending criteria and interest rates are typically stricter than for standard mortgages.
  • There are a number of specialist lenders who offer expat mortgages, and it is important to shop around and compare different lenders before you apply.
  • If you are considering an expat mortgage, it is important to understand the lending criteria and the risks involved before you apply.

Here are the main advantages and disadvantages of getting an expat mortgage:

Advantages:

  • You can buy a property in the UK, even if you are living abroad.
  • You can use your UK income to qualify for a mortgage.
  • You can benefit from the UK’s strong property market.

Disadvantages:

  • The lending criteria is stricter than for standard mortgages.
  • The interest rates are typically higher than for standard mortgages.
  • There may be additional fees associated with expat mortgages.

If you are considering getting an expat mortgage, it is important to seek advice and discuss your individual circumstances.

Portfolio Landlords

A portfolio landlord is a landlord who owns four or more mortgaged buy-to-let properties. Portfolio landlords are subject to different lending criteria than landlords who own fewer properties, as lenders view them as being more at risk of financial difficulty.

In addition to the standard buy-to-let criteria, portfolio landlords may be required to provide additional information to lenders, such as:

  • Details of all of their mortgaged properties
  • Their income and expenditure
  • Their financial projections
  • Their experience as a landlord

Lenders may also impose stricter affordability checks on portfolio landlords, as they are more likely to have a large amount of debt.

There are a number of benefits to being a portfolio landlord, but also some risks such as:

  • The risk of tenant default
  • The risk of property damage
  • The risk of falling property prices

If you are considering becoming a portfolio landlord, it is important to carefully consider the risks and benefits involved. You should also make sure that you have a good understanding of the lending criteria that lenders apply to portfolio landlords.

If you are interested in becoming a portfolio landlord speak to me for advice and help to find a lender that is suitable for your needs.

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