Whether you want to rent out your old house or become a property tycoon let us give you the best advice to start you on your way.
Getting your next property is probably close than you think… we have access to lenders who require:
- No minimum income
- Don’t need to be an owner occupier
- Deposits from 15%
Buy to let mortgages are just like any other mortgage except:
- They usually have higher lender fees
- Interest rates are likely to be a little higher
- You can have repayment or interest only
- Many BTL mortgages are not regulated by the FCA. The only exceptions are if you want to let the property to a close family member e.g. a child, parent, grandparent, spouse or civil partner.
- The expected loan amount depends on how much rent you are likely to receive
The amount you can borrow on a buy to let is linked to the amount of rental income you can except to receive. Lenders will normally want the rental income to be around 25% higher than your mortgage payment. We can give you advice on how much rent you are likely to be able to charge.
There is an additional 3% Stamp Duty Land Tax on buy to let properties on top of the SDLT rate bands if the property is over £40,000. Your rental income, after some expenses is also liable to Income Tax. This can be complicated depending on your tax position. We can explain how this will affect you.
As with all interest only mortgages, it is important you don’t rely on selling the property to repay the mortgage. House prices can fall as much as they rise and if your property sale doesn’t cover the mortgage you will have to make up the difference. If your house does sell for a profit, you may have to pay Capital Gains Tax if your gain is more than the annual Capital Gain Tax threshold.