Buy to Let
The Most Suitable Mortgage Advice
Buy To Let mortgages have seen an increase in popularity over the last decade with individuals looking to create additional income streams by investing into residential property.
If you want to buy a property with the specific intention of letting to create income and you need finance to achieve this: a Buy To Let mortgage is what you need. These mortgages work in the exactly the same way as residential mortgages with lending secured against the property over a set term. Lending can be undertaken on a capital and interest, interest only or a combination of both. This will maximise rental income by minimising the mortgage costs. Repayment of the mortgage, if done on an interest only basis, is then achieved by the sale of the rental property at some point in the future.
The minimum deposit for Buy To Let mortgages is typically 25% although some lenders do offer Buy To Let mortgage products with a lower deposit subject to status.
Criteria does vary between lenders but two distinct lending camps have emerged over the last few years:
Your home may be repossessed if you do not keep up repayments on your mortgage.
Most Buy-to-Let mortgages are not regulated by the Financial Conduct Authority.
Lending is based on a rental stress test calculation, therefore ensuring adequate mortgage payment coverage for the lender. This calculation is typically assessed on a worst case mortgage rate scenario.
Since the Mortgage Credit Directive introduced a new legislative framework for Buy To Let mortgages there has been an introduction of two categories.
Under the new legislation, Consumer Buy To Let Mortgages are now given regulatory protection. This has caused some Buy To Let mortgage lenders, specifically to excluding such mortgages from their criteria.
If you wish to explore the opportunity to purchase a Buy To Let property, call Riviera Mortgages today for an initial, no obligation, consultation.
Think carefully before securing other debts against your home.
Consolidating debt may reduce your outgoings now, however you may pay more interest over your mortgage term.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Riviera Mortgages charges an arrangement fee up to £495 for arranging your mortgage, the precise amount will depend on your circumstances and the amount of work undertaken. The exact fee will be confirmed before you apply for your mortgage, this is payable on application and is non-refundable. We will also be paid a fee from the lender.
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Address
26 Walnut Road
Chelston
Torquay
TQ2 6HS
Call Us
01803 500190
Email Us
enquiries@rivieramortgages.co.uk