"Buy to let mortgages are designed for borrowers who intend to rent out property to tenants, but not to live in there themselves."
There are many different products available and Peter Morgan Financial Services
are in a position to offer advice on all aspects of the rental market.
Buy to let mortgages differ from residential mortgages in the way the loan amount is calculated and the deposit required.
A brief overview of Buy to let mortgages would be:
Normally a deposit of at least 20% is required.
Maximum Loan amount
This is usually determined by the rental income received from the property which is set by the valuer at survey.
The lender will then calculate whether the rental income meets their criteria using a % basis.
- Loan amount £75,000 with a monthly mortgage repayment of £375.
- Expected rental income of £475 per month.
- Lenders % calculation of 125% of monthly mortgage payment would be £375 x 125% = £468.75.
- As the rental income is more than the % calculation the lender would accept this as proof of affordability.
Some lenders will also take into account any unused personal income.
With this in mind why not use Peter Morgan Financial Services to identify the best options available to you.
When considering a Buy to let it is important to bear in mind any additional costs such as
- maintenance costs and any service charges
- rental and legal expenses.
- Peter Morgan Financial Services charge no broker fees for any advice given.
- Peter Morgan Financial Services is an appointed representative of Mortgage Support Network Ltd which is authorised and regulated by the Financial Services Authority.
- Think carefully before securing other debts against your home. Your home (or property) may be repossessed if you do not keep up repayments on your mortgage.
- PLEASE NOTE NOT ALL BUY TO LET MORTGAGES ARE REGULATED BY THE FINANCIAL SERVICES AUTHORITY
If you would like to discuss your individual needs or require more information
on our financial services please contact us:
01639 798 222
01639 798 210
Visit our Branch
Our financial services branch address is:
42 Windsor Road, Neath, West Glam SA11 1LU.
Call in and discuss
your needs with one of our friendly staff.
...see map to Financial Services Branch