Buy to Let Mortgage
A high proportion of Buy to Let applications fail nationally, usually because technically the rentals will not support the minimum rental requirement of the lender. 12and3 have over a 90% success rate with Buy to Let Applications. If we cannot find a lender to provide your funding, nobody can!
Buy to Let Lenders
Buy to Let lenders have different ways of calculating the minimum rental requirement. Some rely on the rental income, others take into account the investors income. Some Buy to Let lenders accept HMO's and student lets, others do not. Some Buy to Let lenders will accept apartments above shops, most will not. A few Buy to Let lenders will permit a back to back purchase and remortgage, most will not. A few will accept foreign nationals, most will not. Clearly, it is vital to ensure the correct Buy to Let lender is chosen.
Circumstances
Planning the finance is clearly critcial, whether it is the purchase of a new build apartment in the city centre, a distress sale or purchase at auction followed by remortgage, or the refinance of a portfolio with a draw down facility. Some mortgages are more complex than others but regardless, 12and3 will always aim to secure the lowest cost Buy to Let mortgage for your needs.
| Todays best deals |
Type |
Rate |
Period |
LTV |
Notes |
| Tracker |
4.84% |
31.10.08 |
85% |
Rent required 125% of payrate |
| Fixed |
5.19% |
2Yr |
90% |
Rent required 100% of payrate |
*Taken from TRIGold
Buy to Let Remortgage
There is a large choice, and the criteria for the lenders are similar to Purchasing, with up to 85% LTV. But the most competitive Buy to Let remortgage rates will be found below 80% LTV. Many investors will remortgage regularly (every 2 or 3 years) to release equity from the current property to fund further purchases. Others prefer to remortgage every 5-7 years to minimize the cost of solicitors and lenders arrangement fees, etc. We have access to the entire market and can tailor your buy to let remortgage to your precise requirements.
Let to Buy
Letting the property you have been living in and releasing some of the equity to use as a deposit to buy another is very popular. There are some very competitive Let to Buy interest rates available, most work on a maximum of 85% LTV. Let to Buy mortgages are no different from standard mortgages in so far that you have a choice of fixed rate, trackers or discounted and they are usually completed in 4 to 6 weeks. They can work on rental calculation only or a combination of rent and personal income.
Many investors take full advantage of the tax benefits of increasing the let to buy or buy to let mortgages to the maximum and using the equity released to reduce or remove the mortgage on their own home.
Go to specialist Buy to Let Investor Website
You can find more details on -
- Buy to let mortgages
- Builders gifted deposit
- Buying at auction
- Investment bonds
- Bridging loans and
- Commercial loans
on our specialist investor website,
simply click on the link button.
21/1/2008 15% Gifted Deposit Mortgage Returns
Read Now>>
31/8/2007 All 15% Gifted Deposit Schemes Withdrawn
Read Now>>
17/8/2007 Buy to Let Just released, take it while you can. Read Now>>
- Can I get a BTL fixed rate?
Yes, you can access the whole range of mortgage products including fixed rate.
- What is the maximum BTL mortgage?
90% loan to value is the maximum mortgage.
- Can I use a 5% builders gifted deposit?
Yes, but not with all lenders.
- Can I use a 15% builders gifted deposit?
Yes, and you will not be required to use any of your savings towards the deposit.
- Can I use a BTL mortgage to buy at an auction?
In principle yes, but not likely due to the time constraint, go to our investor web site for more details, click here
- Can I purchase an HMO with a BTL mortgage?
Yes, but there are limited lenders.
- Can I purchase a house converted into flats on a BTL mortgage?
Smaller properties with up to 4 flats are possible, more then 4 units require a more complex method of purchase. However, they would all complete on BTL mortgages.
- Can I release equity when I remortgage?
Yes, you can remortgage up to 85% LTV on a BTL property.
- Can I remortgage onto a BTL off a Bridging loan?
Yes, but only a few lenders will allow it within 1 month of purchase.
- Can I remortgage my current home onto a BTL remortgage?
Yes, so long as you are going to rent the property.
- Do all rental calculations work on 125% of the mortgage you pay?
No. They vary from 100% to 130%. Some work on the mortgage you pay, others do not.
- Do any BTL mortgages ignore the rental?
Yes, some you can top up the rental from your own income, some completely ignore the rental.
WE DO NOT CHARGE FINDERS FEES
All investment properties are checked to ensure they are not over priced. We will also check that rental assessments are realistic and that finance can be raised. Most of our investment properties will require minimal investors capital, we try to make them 100% self funding and we can sometimes achieve the release of some equity on completion.
We source investment properties both in the UK and abroad and the same principles applies to both.
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