If you need a buy to let mortgage, Andrew Fagg, our dedicated in house mortgage advisor has some useful advice on the process.
When you apply for a buy to let mortgage you will need to supply the lender with both the details of your income and the amount the property will be rented out for. Usually, the expected rent has to be at least 25% more than the monthly mortgage repayment; for example, if your mortgage payment is £500 per month then the property should be rented for at least £625 per month (assumed interest rate of 5% for the purpose of calculating your interest only payments, which means that the monthly rental income will need to be 25% or more than the monthly payment using the assumed lender interest rate). Our lettings department will be able to provide you with an accurate rental valuation of the property you are looking to buy.
Please note that you must never try to obtain a standard residential mortgage for a property that you intend to rent out as this is classed as fraud and could land you with a custodial sentence and cause problems if you ever need a mortgage in the future.
It is also worth noting that the income you get from a buy to let property is taxable and you need to declare it on a self-assessment tax return.
With the availability and competiveness of buy to let schemes improving, now is a good time to talk to Andrew for advice and to find out the latest rates.
Please contact him on 07720 353866, or firstname.lastname@example.org .