buy to let mortgage adviser in essex

Buy to let mortgages do have some key differences to standard mortgages. The fees tend to be higher. Interest rates are usually higher. The minimum deposit is usually 25% of the property’s value (although it can vary depending on the lender, including some who can consider a lower deposit amount).

The mortgage affordability assessment is based on the rent of the property in many cases, where a residential mortgage is based on your taxable income. This is specifically lending for the basis of purchasing an investment property that you plan to rent out and receive an income from.

Buy to let mortgages can be full capital repayment or interest only mortgages. They also do not adhere to the same age restrictions as many residential mortgages, so the mortgage term can extend well past your expected or planned retirement age. This is because the mortgage is expected to be paid via the rental income coming into the property.

You can, should you meet eligibility rules, keep your existing home and change it to an investment property or buy to let by requesting ‘consent to let’ on the mortgage it currently has, or by taking out a new ‘let to buy’ mortgage. Buy to let and let to buy are essentially the same thing, with the key difference being that the let to buy is a property that you are currently living in and will be moving out of and renting to tenants after the new mortgage completes.

Evergreen Mortgages can help you to understand what all of this means for you personally, so do get in touch and we will help you to put a plan in action.

Once you have more than 3 or 4 buy to let properties you are viewed by many lenders as a portfolio landlord which means they do conduct more detailed assessments before agreeing to mortgages for yourself. Each lender does vary slightly but often on buying the 4th, or on having 4 already and buying the 5th property, you cross the threshold into ‘professional or portfolio landlord’ for lenders.

At this stage you will start to have mortgage applications assessed as more of a business entity, with lenders reviewing property values, current rents, any void periods and the ‘gearing’ of the portfolio. This term relates to the overall LTV of the whole portfolio rather than each property being assessed on its own individual merits.

You may also with your additional landlord experience be looking into HMO’s, serviced accommodation or holiday lets.

Evergreen Mortgages can provide you with experienced advice and a wide access to lenders and exclusive rates through our network mortgage intelligence, so do get in touch and together we can ensure your mortgages and portfolio of properties is working effectively for you.

Bridging loans can be used for residential or buy to let property and are used for short term fiancé on the property usually before a sale or whilst works are being completed on the property to make it mortgageable.

Bridging loans are used in investment property purchase to buy a property that may need considerable works completing before it would be ready to let or before the resale of this property at profit. Interest rates and fees are generally higher than standard residential mortgages and buy to let mortgages, but as most buy to let mortgages need to be in a ‘lettable state’ not just ‘habitable’ at time of purchase, sometimes it is necessary to secure bridging finance.

One of the most important aspects of a bridging loan is ‘the exit strategy’. As bridging finance is generally secured for the short term and this could be between 1 – 12 months, as part of the eligibility assessment, lenders will want a clear and reasonable exit strategy in place to repay the money provided on the bridging loan.

Evergreen Mortgages are able to refer our clients to access Bridging finance if this is required.