Buy-to-Let and investment properties have become more popular in the UK. At Veracity Financial Planning, our advisers will work with you to set out a plan that meets your investment goal, whether that’s as a first-time landlord or a seasoned property investor.
As independent mortgage advisers, we can offer you deals from across the whole of the market. This means we aren’t restricted to the lenders we can use, allowing us to provide our clients with the best deals on the market.
Whilst some of the high street lenders offer both residential and buy-to-let mortgages, not all of them will. We have an unrestricted network of over 500 high street lenders, challenger banks and specialist lenders who all provide different deals that will align with each of our client’s circumstances.
The criteria for purchasing a buy-to-let property differs completely in comparison to a residential purchase. Rental income for buy-to-let needs to be valued in much the same way as the property value for a residential mortgage. Whilst there may be minimum income requirements, your income is less important than whether the rental valuation covers the monthly mortgage payments appropriately.
Other than the above, the overall buying process is pretty much identical to purchasing your own residential property.
Lenders may charge higher fees for a buy-to-let than for a residential property, but our fee structure ultimately doesn’t differ.
Stamp Duty Land Tax on an investment property or an additional property is more expensive than on a residential purchase.
The key difference between residential mortgages and buy-to-let mortgages is the deposit.
You may get away with putting 5-10% down on a residential mortgage, whereas for a buy-to-let you will need to put at least 25% down. Although there are a few lenders offering 20% & 15% deposits in return for much higher interest rates.
The higher the deposit you are willing or able to put down the better the interest rates will be.
Interest rates on a buy-to-let mortgage can be as low or even lower than rates on a residential mortgage.
The rate really depends on your circumstances, the loan to value, as well as some other factors.
Foreign Nationals looking to invest in the UK’s property market are able to raise finance with lenders.
Whether you have a UK credit footprint or not, there are lenders who may be able to assist you.
To find out more about Foreign National Buy to Let Mortgages,
Landlords with 3 or more properties are usually classed as portfolio landlords. This can make it more difficult to find a lender that will consider your mortgage. However, with our network of lenders we will be able to advise the best solution available for your circumstances.
Our adviser fees for portfolio landlords are slightly higher due to the complexity of the circumstances. Our Fees
For example, a portfolio with high loan to values will create different scenarios to those with low loan to values as lenders may be willing to lend across the portfolio rather than looking at individual properties.
In some cases clients may find a really nice property to let but it needs to have work done to make it stand out on the market. Lenders may only be willing to lend on the value of the property pre-refurbishment which may be sufficient to purchase the property but not to carry out the works.
We can work with you to find out how you could raise enough money to carry out the works on the property.
This can be done by raising capital on an existing property or by using a form of specialist lending.
We work with individuals and corporate entities to provide bespoke buy to let mortgage advice.
As independent mortgage advisers, we can offer you deals from across the whole of the market. We work with a range of lenders, high-street and challenger banks – who will be able to lend to most clients, specialist finance lenders – who may be required for more unusual financing needs, and private banks – for individuals looking for a mortgage of more than £500,000.
Our advisers work in Nottingham and the East Midlands but work with clients across the United Kingdom.
If you are looking to move home and would like to discuss your mortgage with us;
Call us directly on 0115 967 0888