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How Can Loanable find me a Buy-to-Let Mortgage?
Calling all landlords, and even perspective landlords, Loanable can help you get the buy-to-let mortgage you need!
If you are a landlord, or wish to be a landlord and build up a portfolio of properties, then you need a buy-to-let mortgage.
Mortgage companies grant many different types of mortgages, and if you are not going to be an “owner-occupier” of a property, meaning you are purchasing it for commercial gain and to let out, you need a buy-to-let mortgage.
Without a buy-to-let mortgage you may be in violation of the terms and conditions of your standard mortgage loan, you could also face insurance issues.
Loanable can help you find the right buy-to-let mortgage that fits your specific needs.
It may be a commercial property with residences on the premise, or it may be a property purchased to be used for student lets, or even an HMO/house of multiple occupation.
Loanable can find your loan!
Looking for a mortgage today?
What is a Buy-to-Let Mortgage?
When you purchase a property, and you do not plan to live there yourself, and plan to let the property out, you need a buy-to-let mortgage.
This can be residential properties such as:
- A house
- A flat
- A block of flats
- Student lets
As a credit broker, Loanable can find the buy-to-let mortgage best suited for your needs.
Even if you have had poor or bad credit in the past, Loanable can help.
You can be just starting out making your first property purchase to begin your property empire, or a seasoned professional landlord, with a large portfolio of properties, Loanable can find you your loan!
- Professionals in the field of lending, commercial or personal loans
- As a broker we do the shopping around for you to find you not just the best deal, but the best loan suited for your needs
- Speed: time is money, and at Loanable we know it, you need your financing quickly as to not lose out on a good deal and savings
- No upfront fees or charges from Loanable.
- Work with several partners to help find you the most appropriate deal.
- Online application to see your options.
- Your details are safe with us, we never, ever sell or exchange them…ever
Looking for a buy-to-let mortgage or some form of commercial financing, complete our easy online application today!
FAQs about Buy-to-Let Mortgages
I am moving house and am planning on letting out my current property, and moving to my new property. Why do I need a buy-to-let mortgage? I have a mortgage on my old house already.
In making the assumption the mortgage you have on your current property is an owner-occupied, once you move out and let the house, you no longer occupy the property, which technically is in violation of the terms and conditions of your current mortgage.
If you are trying to sell the old property, and whilst waiting a sale let it out, you may wish to contact your mortgage lender to request a “Consent to Let”, which allows you up to 12 months to sell the property whilst having a tenant.
In addition, there can also be insurance issues with letting out a property which was initially owner-occupied.
I presently have 5 rental properties all with buy-to-let mortgages, can I get another mortgage?
Yes, however it will depend on a few factors, such as your deposit, income, including rental income, and the valuation of the property.
Many landlords have property portfolios of multiple properties, and many have multiple mortgages.
I have a buy-to-let mortgage on two properties I own, and one is in default as I have tenants not paying their rent, but I have found a new property to purchase with existing tenants. Will my poor credit affect my getting a mortgage?
It may, yes. Credit and credit scores are used in deciding to approve most loans, including mortgages and BTL mortgages.
I have one property as an investment, it is a block of 4 flats. I want to remortgage to a lower interest rate, can I do this?
Yes, remortgaging is possible even with a BTL mortgage. Interest rates may have dropped since you first mortgaged, and here may be more options available to you then the mortgage you currently have.
I am looking to buy my first investment property to let out, how much of a deposit do I need?
The amount you will be required to pay as a deposit will depend on a few factors:
* The lender
* The sale price and valuation of the property
* Your credit score
* Do you have tenants lined up in advance
I do have tenants ready to let the property, do I need a lease?
Depending on your deposit, financials, and other factors, a lender could request you have Assured Shorthold Tenancy Agreement in place. This will show the rent you will be charging, which can help you get the mortgage.
How much of a buy-to-let mortgage can I get approved for?
The amount of buy-to-let loan you can get approved for will depend on a few factors, the sale price of the property, and how much of a deposit you have.
The rental income you will be receiving, credit history, and interest rates can also affect this amount.
What is “right to live” mean, and do I need to show proof to a lender in order to secure a buy-to-let mortgage?
There are a few terms for this, right to rent, right to abode, and right to reside, all due to immigration changes a few years back.
What this means is that you as a landlord have a responsibility to carry out checks, and gather documentation, that your tenants are legally allowed to live in the UK and rent a property.
If you use a letting agent to let your properties, they are responsible to carry out these checks as well.
There are various documents that can be used to very this, such as a passport or Visa allowing someone to live here in the UK.
Are there any types of properties that getting a buy-to-let mortgage on is difficult or not allowed?
Yes, some high rise properties, or houses of multiple occupancies may require a commercial mortgage. If a building has a shop, store, or some form of commercial business operating out of it, even though it may have residences as well, can require a commercial loan as opposed to a buy-to-let.
Some new builds flat can be difficult to get a BTL mortgage, it can depend on our deposit,and the development of the property. You may need a development loan.
Holiday homes can be difficult, but not impossible to get a buy-to-let mortgage, this can be due to the fact the property may not be let out year round. The property would need to show it generates enough income in the peak seasons to sustain the loan.
I am a first-time buyer and want to buy a property to let out. Can I get a buy-to-let mortgage as a first-time buyer?
Yes, however you may need a larger deposit, and your credit score may need to high.
Your options may be limited, but you do have options.
What is the difference between a leasehold and a freehold, and will this affect me getting a mortgage?
In a leasehold situation you own the building, but not the land. There are are time restrictions you can lease the land.
A freehold means you own the building and the land it is on.
Some mortgage lenders do not like to grant loans on leasehold properties unless they have sufficient time left on the leasehold, this can be as long as 70 years.
Should I get a fixed-rate or interest only rate buy-to-let mortgage?
The choice is yours, possible. You need a lender that offers fixed rate mortgages, and also for a time period that you can work with.
Many BTL mortgages are interest only. This allows the landlord/borrower to keep their mortgage payments ow, so they can be competitive in the rents they charge, but still have the rent cover the mortgage payment.
I am self-employed, can I get a buy-to-let mortgage?
Yes, even those who are self-employed can get a buy-to-let mortgage. You will need to verify your income, either through your business accounts or accountant certificate, and also your SA302’s, self-assessment tax forms.
I am buying a second property to live in, and am letting out my old house. I know I need a buy-to-let mortgage, how do I go about this?
You simply apple for a BTL mortgage, which will then pay off your existing mortgage which is owner-occupied. If you have equity in the property, you still may be required to have a deposit, however, much can depend on how much equity you may have.
I own my own property business as a LLC, and want to apply for a buy-to-let mortgage in just the company’s name, can this be done?
Possibly if the company has been in business for a while, and has a proven track record of success and profits. In many instances a lender will ask a director to guarantee the mortgage loan.
Are there early payment fees on a buy-to-let mortgage?
Yes there can be. These fees would be assessed if the mortgage was paid off before the end of this period, and should have been disclosed to you when you took out the mortgage.
Are buy-to-let mortgages regulated by the Financial Conduct Authority?
Yes, and no, there is a tricky area here.
Consumer buy-to-let mortgages are regulated by the FCA. These are “accidental landlord” situations, or where a landlord buys and lets a property, but not as business.
Landlords that buy and let properties and it is is there business, are not regulated by the FCA.
The thinking behind this is that landlords treating this as their business are in a more commercial area, and in addition to the fact they should be aware of the risks and what they are doing.
Consumers who find themselves letting out a property, are regulated and protected by the FCA.
I own multiple properties all let out and generating a positive income. They all have a lot of equity in them. Can I borrow against these, remortgaging to release money to buy another property?
In theory it is possible, but there are few facts that need to line up, such as how much equity you have in each property and how much you wish to release.
You will probably only be able to release any equity up to 75% or 75LTV of the property’s worth.
If the property you are purchasing for you to live in, or to let out. And lastly, do you have any deposit?
The answers to these questions will determine if what you wish to do is feasible.
What fees are involved with a buy-to-let mortgage?
There can be solicitor’s fees, valuation fees, broker fees and lest we forget the new (3%) higher stamp duty tax for landlords and non-owner mortgages.
You also may wish to factor in landlord insurance, and maintenance costs when you calculate the rents to charge.
Please note Loanable does not charge any upfront fees. Our service is free to use. However the lender or broker we introduce you to, may charge a fee.
As a landlord what insurances do I need?
Your mortgage lender will require a building insurance policy to cover the building, and any fencing or other buildings on the property. They may also condition the loan for a landlord’s policy.
If you have any things inside the property that is yours, curtains, carpets, furniture, etc. You may want to take out a contents policy as well.
Is it possible to sell my rental properties in years to come to pay off the mortgages on them?
It may be possible, and it may not. It will depend on market conditions, what the properties can sell for, your equity position, and the mortgage balances.
If you have interest only mortgages you will not be paying down the principle, so it can take longer to build up any equity.
I want to buy a property in Spain to let out. Can I get a buy-to-let mortgage here in the UK?
No, the majority of UK mortgage lenders will not lend on properties abroad. You will need to speak to a mortgage lender in Spain and inquire with them.
Can I get a buy-to-let mortgage if I plan to let the property out to a family member?
No, most mortgage lenders will not grant a buy-to-let mortgage to someone planning to let the property out to a family member. The list of family members are your spouse, parents, children, brother, sister, or grandparent or grandchild.
I have found a property I wish to purchase to let out, but it is need of serious refurbishment. Can I get a buy-to-let mortgage?
Depending on the degree of the repairs and refurbishment, usually no, you my require a development loan or a bridging loan.
What is Consent to Let?
Consent to let is an agreement between your current mortgage lender and yourself, allowing you to let out your current owner-occupied property for a period of time, usually up to 12 months.
You would use a consent to let in the example of you buying a new property, and you cannot sell your current property, but need to let it out for a period of time until it can be sold.
Not all mortgage lenders will agree to a consent to let.
What if I have a buy-to-let mortgage on a property, and move in myself to live there?
You’d be breaking the terms and conditions of the mortgage, and there also may be some insurance issues.
You would need to discuss this with your BTL mortgage provider.
Can I get a self-certification mortgage as a buy-to-let?
No, the government banned self-certification mortgages, and now all mortgage lenders need to verify income and affordability to pay the loan.
Is it better to buy a property to let out that has existing tenants living there?
There can be benefits to having tenants already living in a property, however, once you purchase the property you will need to treat them as new tenants. This means having a short-term tenancy agreement in place, and also performing all the usual and initial checks that are required of landlords.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or any other debt secured on it. The actual rate and fees charged will depend upon your circumstances. Ask for a personalised illustration.
If you are thinking of consolidating existing borrowing, you should be aware that you may be extending the terms of the debt and increasing the total amount you repay.