Buy to Let FAQCapital Fortune have put together some answers to Frequently Asked Questions (FAQs) regarding buy-to-let mortgages below. Buy to Let FAQ 1 What exactly is a Buy to let mortgage? This is a common Buy to Let FAQ. Buy to Let mortgages are specific products offered by home mortgage UK lenders and our taken out to purchase a property which you wish to rent out to others. The rental income received is then used to pay off and/or service the mortgage loan Buy To Let FAQ 2 Does the Buy to Let application process differ from when I took out a residential mortgage? Buy to Let mortgages don’t actually differ significantly from standard residential mortgages. On application, the lender will assess your credit worthiness by undertaking a credit check and if satisfactory will then look at the rental income to be achieved on the property. In the current climate, lenders are looking for rental income to be at around 125% of the monthly payments. For example, if your mortgage would be £400 at a particular interest rate the lender would require there to be at least £500 by way of rental income. Buy to Let FAQ 3 Is a Buy to Let mortgage really just a commercial loan? It is true that previously lenders would look at Buy to Let mortgages as a commercial loan. As a result higher interest rates and seldom would lenders offer best value mortgages to Buy To let clients. However, the mortgage industry has rapidly developed and the Buy to Let market has become increasingly competitive although they are typically slightly higher in rate than a standard owner-occupier mortgage. Buy To Let FAQ 4 Do I have to have a Letting agent manage the property? The answer to this is no. You can both rent out the property yourself and manage the property. Many landlords do this and enjoy the savings they make from not using a letting agent. However, there are some benefits in using a letting agent particularly if they are local. They will know the market in the area and should be able to choose you the right tenants at the best rent. Buy To Let FAQ 5 What types of mortgage can I get a Buy to Let on? A Buy to Let mortgage can be purchased on a repayment basis, interest only or part repayment and part interest only. The types of product are generally similar to those for a residential mortgage and include the following, Fixed Rate Buy to Let Mortgage Discount rate buy to let mortgage, Variable Rate Buy to Let Mortgage, Capped Buy to Let Mortgage, Limited Company Buy to Let Mortgage
Expat Buy to Let Mortgage and Self Certification Buy to Let Mortgage Buy To Let FAQ 6 Will the lender consider my credit rating on a Buy To Let? A lender needs top ensure that the mortgage is both suitable and affordable. In looking at the issue of affordability your credit history is an important factor and this will be considered when making a Buy to Let application. If you need any assistance why not speak to one of our Mortgage Advisers by calling 0845 3 630 430 or Enquire Online. | 
