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Buy-to-Let Mortgages Continued
Apart from your own assessment of the viability of your particular plan, to raise a mortgage from lenders in the current climate will require you to meet certain criteria. Before considering that, you must bear in mind that the multitude of BTL lenders, that existed in the past, are now reduced to only a few, so competition for your mortgage business is at a low level.
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Things to consider
You must take a realistic view of what this is, as often the value a lender will put on the property will be lower than you think the it is worth
Property Valuation
This needs to be certified by a surveyor or letting agent and must exceed your mortgage repayments by between 10% to 30%
Rental Income
Property Portfolios
Until quite recently, you could hold a portfolio of property with a single lender and this would allow the overall equity held in the portfolio to be used when adding a property. This practice has virtually stopped and lenders are now applying their rules to individual properties. This means that each property must now meet the lenders criteria in its own right to obtain a mortgage.
Taxation
Remember, operating a buy to let property is the same as running a business and you will need to consider your tax liabilities as part of your financial assessment. Furthermore, any increase in the value of the property during the period you own it, may make you liable for capital gains tax when it is sold.
Safety
The property must meet the safety standards laid down for the type of property and you should consult your local council or letting agent on these requirements prior to making your purchase.
Operating considerations
Although many people opt to run the property by themselves, most don't have the time and place this responsibility with a letting agent. Letting agents, like all things, can be good or bad, so you need to do your research properly before contracting with one. Their charges vary and high charges do not necessarily reflect the Agents performance. Do your homework and choose wisely.
May we wish you every success with your property purchase
None of the information on this website is intended to promote any specific mortgage product or provide mortgage advice.
CharltonOnLine.com is a trading name of Charlton Marketing and Development Ltd.
CharltonOnLine.com is a trading name of Charlton Marketing and Development Ltd.
Your home may be re-possessed if you do not keep up repayments on your mortgage.
Charlton HomeBuy
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Email: charltonltd@charltonfs.com