Buy To Let Mortgage | Bridging | Evergreen Mortgages

Buy to Let and Bridging

A buy-to-let mortgage is a mortgage sold specifically for those who buy property as an investment, rather than getting a mortgage for somewhere to live in. If you are looking for support into your first steps into becoming a landlord, or if you are an existing landlord with a multiple property portfolio, Evergreen mortgages has the required expertise and knowledge to help you.

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Evergreen Mortgages was set up to provide its clients with long term mortgage advice, to help them plan for their current home and their future home.

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Maybe that future home is somewhere new or maybe the home your in just needs some redesigning and renovating to make it into that dream home we can help with new purchases and with refinancing.

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About Buy to Let and Bridging

First steps into becoming a landlord?

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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.

Portfolio or multiple properties being let

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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

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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.

We need more space!

We can help you to remortgage to allow the release of funds to complete an extension or loft conversion, perhaps you need help working out your maximum budget so you can plan your next home move. Contact us for your personalized calculations.

I need to be in a particular area near my parents or near the right school, but it’s a high value area.

Some lenders will lend more than others, it’s our job to go through the different options to find you the best possible lending amount to give you the best chance of getting in the area you want. Professional occupations get additional access with some lenders, Key workers can get extra lending with certain lenders, and sometimes there might be housing schemes to help you to stay in a certain area. Contact us and we can help you to look through the options.

FAQs

Do I have to pay stamp duty on a BTL?

Yes, and investment property is subject to a higher stamp duty threshold than residential purchases. If you are looking for a guide on what you may need to pay, we can put you in touch with a solicitor who can help, or for a rough estimate, this link will take you to a simple online stamp duty calculator: Stamp Duty Calculator – Latest Updated Stamp Duty Calculations.

What additional requirements or paperwork are required for buy to let mortgages?

In addition to the more standard ID, proof of address, income proof and bank statements when applying for a buy to let mortgage, you will also need to provide a rental income estimate for the property you are buying. Sometimes this is a tenancy agreement, if the property is already let or if this is a new purchase they may ask for a letter from a letting agent to confirm the expected market rent. If you have more than one property, they may ask for additional information on the other properties you own including your tenancy agreements or rent on those properties as well as expected market value and mortgage values on those properties.

Can I buy a BTL as my first property?

Yes, it is possible to buy a buy to let as a first time buyer and first time landlord, but you may be subject to additional affordability checks including income assessments based on your income.

What is the minimum income required to get a buy to let mortgage?

It is possible to get a buy to let mortgage without an income outside of the buy to let rental income. Not all lenders allow this and some lenders will have minimum income requirements which may or may not be able to include rental income.

Is Airbnb buy to let?

An Airbnb property is let on a short term basis so will need a buy to let mortgage similar to a holiday let in most cases. This is specialist lending and should be discussed with an adviser, get in touch with Evergreen mortgages today to discuss your specialist buy to let options, through our wide panel of lenders.

Buy to Let and Bridging

We love what we do.

Mortgage Advice

Refinancing

Annual Reviews

Satisfied Clients

About Buy to Let and Bridging

We need more space!

I need to be in a particular area near my parents or near the right school, but it’s a high value area.

FAQs

Get in touch

About Evergreen Mortgages

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