We have years of experience in advising landlords on the right buy to let mortgage for their needs.
If you’re an experienced landlord or just starting out, you’ll have specialist requirements that set you apart from a standard residential purchaser. We can access the major lenders in the Buy To Let market including those specialising in lending to professional landlords and consumer buy to lets. Our Buy To Let mortgage advisors are very flexible and offer appointments over the phone, via video call or face to face from 08:00 - 20:00. Get your quote today.
Book Your Free Call
Leave the hard work to us
Its that simple
Buy To Let Calculator
For most of us, buying property will be the biggest financial decision we’ll ever make. Use our simple buy to let calculator to see if you can afford to take this type of mortgage out and what rental income you may need.
When finding a mortgage product that will meet your requirements, both your income and outgoings will play a part.
The EU Mortgage Credit Directive of 2015 introduced stricter lending criteria, which led to mortgage lenders having to take greater steps to check affordability – including on remortgages.
These rules require your lender to check you can afford your repayments, both now and in the future. To do this, they will need information about your income and outgoings. You will have to inform them if you expect your income and outgoings to change in a way that means you’ll have less to spend on your mortgage repayments. You will also need to provide your mortgage lender with evidence of your income.
Buy To Let Details
Before you decide on a Buy To let mortgage, you need to calculate how much or how little you can safely pay each month and which is the most appropriate for your needs.
Buy To Let mortgages are designed for property investors and private landlords, who do not intend to live in the mortgaged property. Our Buy To Let Advisers understand that this can be can be a daunting prospect. There’s so many things to think about – and that’s before you’ve even considered the many mortgage products, rates and lenders to choose from. We will guide you through the process from beginning to the end.
Well it is, but it isn’t. Buy to let mortgages are not like standard mortgages. Usually, the BTL interest rate you’re offered will be higher than if you’re buying the house to live in yourself. You’ll also probably need a larger deposit to contribute to the overall purchase price. Any mortgage lender will also look at the potential profit you may make, and the risk of investing.
Buying additional property for the purpose of letting it to earn rental income can be risky and complicated since there is no guarantee that house prices will rise nor that rental income will be uninterrupted. On the upside, letting a second property to tenants could return great financial rewards over the longer term, but it’s important to properly consider the risks, as well as rewards, involved in ‘Buy to Let’ first.
There are more costs to prepare for when you’re renting out a property. The letting agent you use will take part of your income in fees. You’ll also have to set aside money for maintenance of the property, insurance, possible legal fees and more. Remember to take these into account when setting any Buy To Let budget.
Whether you’re looking for an income or intending to sell at a profit, remember that market conditions can and often do change. If rental or purchase prices fall, you could be facing a loss. Its important to know all the facts ahead of time and take note of the advice from BTL experts (hopefully ours), think it through very carefully.
The two most common ways of repaying your mortgage are capital repayment and interest only.
On a repayment mortgage, your monthly payments will partly go towards repaying the interest accrued on the money you’ve borrowed and partly towards repaying the capital sum (i.e. the amount you borrowed).
The benefit of capital repayment is that you’ll be able to see your outstanding mortgage reducing each year (albeit very slowly in the early years), and you are also guaranteed that your debt will be repaid at the end of the mortgage term, as long as you keep up your payments. On a capital repayment mortgage, the shorter the term you pay your mortgage over the bigger your monthly payments will be.
By having a longer term, you may benefit from a lower monthly payment, but you will also pay more interest to the lender over the mortgage term.
Capital repayment is the most common way of repaying your mortgage.
Interest Only Mortgage
For an interest only mortgage, your monthly payments will only cover the interest on your mortgage balance. The capital you owe (i.e. the amount you borrowed) will not go down and you will need to repay this in full at the end of your mortgage term. This means you will need to make a separate investment or combination of investments to generate the capital required, and you will also need to prove that you can afford to do this.
You should bear in mind that the value of investments can go down as well as up and you may not get back the original amount invested. For an interest only mortgage, the lender will need to see your plan for repaying the loan when the interest only period ends. If you fail to generate enough to repay your mortgage by the end of the mortgage term, you may be forced to sell your property.
With an interest only mortgage, you must be able to demonstrate how you will repay the capital sum at the end of the term.
It’s easy to underestimate the mortgage costs involved when buying a property.
Lenders may ask you to pay a valuation fee. The type of valuation you choose will depend on factors such as the age and condition of the property.
These are the costs your lender will charge you for arranging your mortgage. Some lenders will allow the fee to be added on to your mortgage, but this means you will be charged interest on it over the mortgage term.
The fees charged by a solicitor will include their conveyancing fee (i.e. for the transfer of land ownership), as well as charges for legal registrations and other miscellaneous costs (known as disbursements) such as local search fees and Land Registry fees. Some lenders may offer to finance some or all of your legal costs as an incentive.
If the amount you wish to borrow is greater than a specified proportion of the property’s value (typically 75%), you may incur a higher lending charge.
Lenders may charge an ERC if you make an overpayment in excess of any stated limit, if the loan is repaid early or if you remortgage during the early repayment period. This can amount to a significant cost, so you should always check the early repayment terms in the offer letter from your lender.
Lenders may charge a fee to release the deeds of a mortgaged property to you or a new lender.
Before we get started, we will explain how we will be paid for arranging your mortgage if it all.
Our Mortgage Advice Video
What we do for you
GHL Direct advisors offer flexible appointments over the phone, via video call, or face-to-face, wherever and whenever you works for you. We pride ourselves on being transparent, trustworthy and honest.
You will get
You wont get
Your home/property may be repossessed if you do not keep up repayments on your mortgage. Some buy to let mortgages are not regulated by the Financial Conduct Authority.