New and Experienced Landlords
Whether you are becoming a landlord for the first time or looking to expand an existing portfolio, you will need to take out a buy to let mortgage rather than a standard residential mortgage. A buy to let mortgage is specifically for people who are buying a property to rent out to a tenant or tenants.
Securing the right Buy to Let mortgage is essential to maximise your potential profit. Your mortgage repayments will be your biggest ongoing cost of your buy to let property. To get the most out of your investment – always use a qualified mortgage advisor to help you find the most suitable deal for your circumstances.
Whilst there are similarities between Buy to Let and normal, residential mortgages there are some key differences between the two.
- Buy-to-let mortgages are not normally regulated by the Financial Conduct Authority.
- Some buy-to-let transactions are defined as “consumer buy-to-let” and they will be classed as regulated by the Financial Conduct Authority – we will advise you what type your property is classed as.
- Interest rates are ‘usually’ higher on buy to let mortgages compared to residential.
- Whereas for residential mortgages your deposit could be lower, you will usually need a higher deposit to obtain a buy to let mortgage.
- Unlike a standard mortgage, where the amount you can borrow is linked to your income, with a buy to let mortgage, the lender will instead look at how much rent you could make from the property on which the mortgage is secured.
Disclaimer
Think carefully before securing debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
NEST Mortgage and Financial Solutions Ltd fees are payable on application. Our typical broker fee is £495, however this may be subject to a change, dependent on your status and circumstances.