Bespoke Finance

Buy-to-Let Mortgages

 

  1. About Us
  2. Apply Online
  3. What deposit is needed?
  4. What rental income is needed?
  5. Do I qualify?
  6. How do i compare mortgages?
  7. Am I a portfolio Landlord?

Buy-to-Let Mortgage Broker

Compare buy to let purchase mortgages with nationwide specialist mortgage advisers online. You can save money when you compare buy to let purchase mortgage rates with quotes from some of the leading mortgage providers in the UK.

The rules around landlord finance can be complicated from unuseual properties, rental stress tests, limited company buy to let and more so for portfolio landlords. Your circumstances can limit options from minimum income, credit score and experiance.

With Bespoke Finance you can apply online for a free enquiry and receive advice from mortgage advisers specialiseing in property investment finance.

Low Rates

We work for you, to get the best rates in the market.

Low Fees

Just £495 on application.

Whole of Market

We comprehensively search 120 Lenders.

Mortgage Adviser

Our mortgage advisors are with you every step of the way.

Easy Application

Apply Online or on the Phone.

Authorised & Regulated

Qualified Advisers & FCA Authorised Firm

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Our mortgage advisers analyses every mortgage on the market from over 70 lenders to find the best one for you. Once we find you the best mortgage, we’ll be with you every step of the way.

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What is a buy-to-let mortage?

If you intend to buy (or remortgage) a property to rent it out you will need a buy-to-let mortgage.

The difference compared to a residential mortgage is consent to rent it out. Also the loan amount derives from the rent instead of your personal affordability.

You may need a specific type of mortgage - HMO Mortgages allow you to rent a single house to multiple tenants. A Limited Company mortgage allows you to buy in the name of a company.

What deposit is needed?

Landlords with larger deposits can enjoy better mortgage products and rates.

The minimum deposit is 15% of the property value (85% LTV). The mortgage rate can be from 2% higher than those landlords who can invest 20% deposit (80% LTV).

The rental amount can limit the maximum loan achievable, requiring higher deposits.

Our mortgage advisors can help you release equity from other properties to raise a deposit.

What rental income is needed?

New regulations limit borrowing based on the rent deemed achievable by the lenders valuer. The minimum is assessed at a rate of 5.5% ensuring a 125% coverage.

Simply for every £1,000 borrowing you need £5.72 rent, at a minimum. As such for a £100,000 mortgage you would need at least £572 rent.

That demonstrates the minimum - mortgage lender criteria may be tougher .

Landlords who are higher rate taxpayers or have personal income bellow a threshold. Have higher stress tests.

Landlords who are basic rate taxpayers, get 5 year fix mortgages or invest via a limited company. Are offered lower stress tests.

Property types also affect affordability with HMO Mortgages having higher stress tests.

Our mortgage advisors will assess the market to help find the best mortgage given the anticipated rental amount. We can recommend structures to get the lower stress tests or help release equity to fund higher deposits.

Do I qualify?

There are many qualification criteria such as limits on first time buyers or buy-to-let experience. It may be personal income or difficulties around self-employed income proof. Others may have issues with credit scores or variety of other personal criteria.

In addition there are property criteria such as day 1 remortgages or property type. It may be rental stress tests or difficulties with property being near commercial properties. Others may have issues with tenancy types or a variety of other property specific criteria.

Our mortgage advisors will assess your personal circumstances and that of the property to help find the best mortgage given your needs and requirements.

How do I Comparing Mortgages?

With public tools it is very difficult for you to compare mortgages without assistance of a mortgage advisor. It is difficult to know what you can or can not qualify for.

Our mortgage advisers will help you assess the market. Find the best mortgage available. With years of personal experience and our knowledgebank we can disqualify lenders. This helps prevent false starts.

There are many ways to compare the best mortgage for you. Wanting low fees such as low arrangement fees, valuation fees or solicitors fees can be one criteria.

Others may be rate driven, looking for the best mortgage rate. Most landlords are looking to "total to pay" over the initial term. Finding the lowest amount fees, rates, etc all added up to compare the lowest you will pay over the initial term.

Are buy to let mortgages interest only?

The trend for buy-to-let mortgages has been to go for Interest Only.

With the Government recently removing mortgage interest relief. It can be in your best interest to look at repayment or part-repayment buy to let mortgages. To give you better returns on that investment over the years.

Landlords looking to expand there portfolio may prefer interest only mortgages. Allowing lower payments, to save for further deposits for further properties, giving higher returns. Known as leveraging.

Whatever your plan our mortgage advisers can obtain for you repayment, part-repayment, interest only and offset buy-to-let mortgages.

Is Buy to Let Mortgages Regulated?

The Financial Conduct Authority (FCA) does not regulate most types of buy-to-let mortgages.

There are exceptions known as "consumer buy-to-let". Such products are if you are to rent the property to a close family member. (e.g. spouse, civil partner, child, grandparent, parent or sibling).

Regulated Buy-to-Let mortgages have stricter affordability rules comparable to a residential mortgage.

Am I a portfolio landlord?

The PRA define portfolio landlords as: “borrowers with four or more distinct mortgaged buy-to-let properties, either together or separately, in aggregate.”

If you do have 4 or more mortgaged buy-to-let properties, you will find a more paperwork intensive process. The lender may request a business plan, a portfolio spreadsheet, background portfolio stress testing, assets & liability or cash flow forecast.

At Bespoke Finance we help portfolio landlords through the paperwork. We know which mortgage lenders are in favor or not of portfolio landlords.

Is buy-to-let worth it?

The investment is not unlike any others - you can make good returns or you may make a loss from property downturns, low rental demand or bad tenants to give a few examples.

Many investors like buy-to-let as it is a brick & mortar investment, you have a physical asset to show for your investment. One that has the possibility to be resold at a loss, break even or profit depending on market conditions. An asset that if chosen wisely will give you monthly returns on your investment.

It can also be hands-on, you can talk to your customers and provide a good service. You can invest time to renovate the property. Your efforts can affect the bottom line.

What is buy to let stamp duty?

You must pay Stamp Duty Land Tax (SDLT) if you buy a property, the amount is a percentage of the value of the property.

If this is the first property you pay the standard SDLT rates. If you already own another property (such as a home) then you pay an extra 3%.

For instance, properties valued from £125k to £250k usually pay 2% SDLT. If you own an existing property that will be 5%.

You can check out our calculator for more information and conveyancers will discuss with you the exact SDLT you will have to pay. Whilst we keep it simple here, it can be a complicated tax.

Can I get a Buy-to-Let as first time buyer?

We can help first time buyers invest in buy-to-let, there is a lot to consider for you. It may disqualify you from Government schemes such as Help to Buy and may result in higher SDLT if you later decide to buy a residential.

As a first time buyer with no mortgage experience options are low and rates may be higher than homeowners.

Can I get a buy-to-let as a joint application?

Yes - most (but not all) mortgage lenders limit the number of applicants as up to 4.

We have of-course helped man & wife invest in buy to let but also children & parents, cousins, business partners and every combination to think off.

Can I get a buy-to-let on a new build?

Yes - most (but not all) mortgage lenders limit the loan to value on new build properties to around 75% LTV. This is to accommodate the "new build premium" that buyers pay, the value is expected to fall a little before keeping up with the rest of the local market.

YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Bespoke Finance is a trading style of Bespoke Finance Direct Limited.

Bespoke Finance Direct Limited is authorised and regulated by the Financial Conduct Authority (No. 715805) to transact regulated mortgages.

The FCA does not regulate some investment mortgage contracts.

Bespoke Finance Direct Limited is registered in England and Wales (No. 09623432) at 31 Church Lane, Pudsey, LS28 7LD.

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