Securing a Buy to Let mortgage is simple with The Mortgage Pod
So, you’ve found the perfect property to rent out and can almost visualise your first tenants moving in. The next step in purchasing a Buy to Let property is to secure the Buy to Let mortgage that suits your needs, such as the potential rental income and your finances.
Are there any significant differences between your standard residential mortgage and a Buy to Let mortgage? Yes, it all comes down to a difference in their purpose.
A Buy to Let mortgage, sometimes known as a ‘rent mortgage’ is a mortgage that is specifically taken out for the purpose of earning rental income.
Why use a Buy to Let mortgage broker?
Unlike your typical residential mortgages with lots of different lender options, a smaller section of the market is available for Buy to Let mortgages. As well as navigating the more limited choice of Buy to Let mortgages, mortgage brokers are priceless in helping you to achieve the best rates on the market, many of which won’t be accessible without a broker.
Here at The Mortgage Pod, we don’t believe that you should have any restrictions on your goals or be stressed when securing a Buy to Let mortgage. So let us take care of the heavy lifting whilst you put the kettle on.
Life is too short for stress
We know that Buy to Let mortgages can be complicated and challenging, but at The Mortgage Pod, an expert mortgage broker will be able to find you the perfect Buy to Let mortgage offer for your circumstances.
From application to signing on the dotted line, your experienced mortgage broker will be able to take care of all the searching, chasing and applying for you, creating a stress-free process to securing your perfect Buy to Let property.
Here at The Mortgage Pod, we’re here to help you achieve your goals as stress-free as possible. We’ll help you to secure the perfect Buy to Let mortgage for your needs, and you can get on with getting your property rented out in no time!
What else do you need to know?
What is a Buy to Let mortgage?
A BTL mortgage is similar to your standard residential mortgage but has one main difference: your intention to earn rental income from the property. A Buy to Let mortgage will consider how much rental income you can earn for the property as well as your financial circumstances.
Why is it important to speak to a mortgage broker for a Buy to Let mortgage?
It can be a lot simpler to navigate the mortgage application process with an experienced mortgage broker by your side, especially when securing a Buy to Let mortgage. By asking you questions about your future goals, where you are currently, and if you're looking to have further properties down the line, it'll help us to research the best rates on offer.
In addition, a mortgage broker can help you weigh the different offers and make an informed decision.
What taxes are involved with a BTL property?
The main tax you pay when you purchase a property is stamp duty land tax (SDLT), a percentage of the property. When you're buying a rental property, there is an additional 3% of SDLT applicable.
This additional 3% is applicable whether it's a new home, if you're planning on renting out where you currently live, a BTL property purchase, or if it's a second property.
It cannot be avoided by splitting assets between a couple as you're considered financially tied together.
Finally, you'll also pay tax on your rental income.
How does the mortgage process work?
While securing a Buy to Let mortgage can be challenging, it doesn't have to lead to you tearing your hair out! By working with an experienced mortgage broker, they can support you and help to alleviate the stress of making a Buy to Let mortgage application.
To start, we'll discuss your situation, budget, and potential rental figures for a property you've got your eye on. This helps us to establish the maximum loan amount that you can borrow. Plus, we'll discuss the documentation that will be needed.
We'll help you to find a lender and make your application; once the lender has completed all the necessary valuations and checks, they'll make a formal mortgage offer.
Can I still get a mortgage if I'm self-employed?
There are many misconceptions around being self-employed and the ability to attain a mortgage. However, there are many competitive options available to those who are self-employed. In order to find the best option for you and your circumstances, it's always best to speak to a mortgage broker.
Most lenders will generally require a minimum of two years of trading accounts and personal HMRC tax overviews. However, all isn't lost if you've been self-employed for a shorter period. And in this case, it's doubly essential to speak to a broker about your circumstances and to help you secure a mortgage.