Buy To Let Mortgages

Everyday Mortgages covers the whole of the UK but some of the cities recently covered are; Birmingham, Bristol, Cardiff, Edinburgh, Glasgow, Leeds, Liverpool, London, Manchester, Newcastle & Nottingham.

The Differences

Buy-to-let mortgages are significantly different to residential mortgages. Most lenders’ buy-to-let criteria states an applicant must earn a minimum income (dependent on the individual lender) and the expected rental income must cover the mortgage payment by a certain threshold (dependent on the individual lender).

Generally, you will need 20-25% deposit to get a buy-to-let mortgage as lenders are more cautious about this type of application.

Things To Consider

  • Always research the location before investing in the property
  • Define your tenant’s profile in that location (student, family, professional)
  • Consult a mortgage broker who can advise on BTL mortgages
  • Keep monitoring buy-to-let mortgage rates even after you get a mortgage
  • Keep your property maintained and looking nice
  • Don’t underestimate tenant credit reference checks – they cost about £10 per person
  • Protect the tenant’s deposit with a Deposit Protection Scheme
  • Get landlord insurance specifically designed for rental properties
  • Keep accurate records for each rental property
  • Get accredited and consider joining a trade body or landlord association

To find the most suitable product for your BTL requirements please contact Everyday Mortgages Ltd.

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Mortgage Product Types

A fixed rate is when the rate of interest your mortgage borrowing is calculated on will not move for a period of time. Usually 2-5 years. Longer terms may be available. A fixed rate provides security knowing your mortgage payments will not increase for a specified period of time.

However, the potential downside to a fixed rate is that if the base rate reduces during the fixed rate period you will not be able to benefit from reduced payments.

A tracker rate is when the rate of interest your mortgage borrowing is calculated on increases or decreases in line with a linked base rate. This will mean your payments could increase or decrease. Tracker rates provide more flexibility than fixed rates although borrowers must ensure they can afford their mortgages if the rate increases.

A capped rate is very similar to a tracker rate as the rate increases or decreases in line with the Bank of England Base Rate but will never exceed a specified top level – ‘the cap.’

The product is a niche product and is not always available.

A SVR mortgage is a loan at the lender’s normal mortgage rate – ie without any discounts or deals. It moves up and down at the lender’s discretion. This means your payments could increase or decrease.

A discount mortgage gives you a lower rate for an agreed period usually 1-5 years after which the rate will increase. A discount mortgage normally gives you a discount from the lenders Standard Variable Rate. This will mean your payments could increase or decrease. Borrowers must ensure they can afford their mortgage if the lender increases their Standard Variable Rate.

An offset mortgage allows your savings to work harder for you. It is a way to reduce the amount of interest calculated on your mortgage. For example if you have a mortgage of £100,000 and savings of £20,000, if you offset the savings you would only be charged mortgage interest on £80,000. This would either reduce your term or monthly payments. The £20,000 savings would generally still be accessible. The product to run alongside this type of mortgage would usually be a tracker rate although fixed rates are also available.

Why Use Everday Mortgages Ltd?

UK Wide Online Mortgage Broker

  • Fully CeMAP qualified adviser who provides full advice and recommendation
  • Work on your behalf and not on behalf of the lenders
  • Deal with all the administration and paperwork on your behalf
  • Offer advice on Life Cover, Critical Illness Cover, Income Protection and Buildings/Contents Cover
  • No obligation service
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