A property to rent out and/or HMO
If you’re looking to buy your first investment property or want to add to your existing portfolio we can guide you through the process. If you have an existing buy-to-let mortgage, we can review these also, to ensure you are on a competitive deal. Typically the amount you can borrow is based on the amount of rental income you expect to receive and less emphasis on your earned income.
You should expect lenders to ask for a minimum deposit of 20% to 25%.
If you are looking to rent out individual rooms within a property, this is called a house in multiple occupancies (HMO). A property rented by at least 3 people who are not from 1 household but share facilities like the bathroom and kitchen.
With this type of rental, you will need to take into consideration the HMO legislation as set out by the local government. It is important you select the right mortgage for the right purpose, speaking to your mortgage broker will help you avoid any unnecessary mistakes.
Limited Company Buy-to-Let
Due to recent tax changes, more landlords are investing in property via a limited company.
It is important to note, if you were to take out a buy to let mortgage through a limited company, your limited company needs to have been set up for the purpose of buying/selling/managing property. If you don’t have a suitable limited company, you can set up a special purpose vehicle (SPV). The amount you can borrow on a limited company buy to let is typically based on how much rent is received. First-time landlords, experienced landlords or those with a property portfolio, we can help. Please note, some buy-to-let mortgages are not regulated by the Financial Conduct Authority.
Your property may be repossessed if you do not keep up repayments on your mortgage
The fee for arranging a mortgage is £500 but the cost for our initial meeting is met by us.
Our fee is split into 2 payments, £200 on submission of an application and £300 payable once a mortgage offer has been issued.
Under certain circumstances, we reserve the right to charge up to 1% of the loan amount, typically this will be £500. We will provide you with written confirmation of your fee prior to the commencement of any chargeable activity.