Your mortgage may have been the best deal for your circumstances at the time but is it still performing as well as it could?
Buying a house is one of the most important purchases you will make. Buying a home for the first time can be an even more daunting prospect.
Self-certification (self cert) is a simple way of detailing your income without having to provide proof of income.
Buy-to-let mortgages are for investment properties.
As with regular domestic home loans there are many products on the market ranging from special offer deals to fixed and variable rate loans. With a buy-to-let mortgage some lenders will only consider your rental income when offering a mortgage, while others will place more emphasis on your normal earnings, especially if you only have one or two rental properties.
Your expected rental income must exceed your mortgage repayments by a certain percentage. For example, your mortgage lender may require a rental income of 130% of your monthly mortgage payments. Your lender will also want to establish whether the property you are buying is a good long-term investment. So buy-to-let mortgages are subject to the usual status checks. Generally buy-to-let mortgages are available for between five and 45 years and for up to 80% of the property value.
When considering a buy-to-let it is also necessary to bear in mind any additional costs such as letting agent's commission, insurance premiums for building and contents cover and rental and legal expenses cover, the costs of keeping the property in a suitable condition for letting, service charges and ground rents if the property is leasehold.
More and more people are investing in property as a long-term opportunity to make profitable returns, and as a way of securing finance for their retirement.
There are now plenty of competitive buy to let mortgage deals around that are specifically aimed at the buy-to-let market, ranging from special offer buy to let mortgage deals to fixed and variable rate options.
In addition, mortgage lenders will often assess buy-to-let mortgages on the earning potential of the property (i.e. the rental income) as well as normal income.
Are you ready for a Buy-to-Let mortgage?
When you take out a buy-to-let mortgage, you will be expected to meet certain criteria:
- You will be required to put down a deposit and this will be typically larger than for a standard residential mortgage - it will likely be 25% of the property's value.
- Your expected rental income must exceed your mortgage repayments by a certain percentage - for example, your lender may require a rental income of 125% of your monthly mortgage payments, this calculation usually will be made on the payment of a capital repayment mortgage even if you have taken out the option of an interest only payment. Your lender will also want to establish whether the property you are buying is a good long-term investment.
The overall cost for comparison is 8.4% APR. The actual rate available will depend upon your circumstances. Ask for a personalised illustration. APR variable and based on a usual case. A typical broker fee is £2100, but this is for a remortgage solution, it incorporates when necessary the solicitor's fees, solicitor's disbursements, our broker fee, processing costs and the property valuation fee, you pay no up-front fees when choosing this payment option.
Your home may be repossessed if you do not keep up repayments on your mortgage.