Buy-to-Let Mortgages
Mortgage solutions to suit you & your portfolio.
Whether you are a first-time landlord or you are a seasoned property investor with a vast portfolio, we’re here to help ensure your borrowing is structured in the best way possible.
How do Buy-to-let (BTL) mortgages work?
These mortgages are for property which you intend to rent out to a tenant. The amount you can borrow is normally based on the rental income from the subject property, however some lenders may also consider your other income and outgoings in reaching their decision. Other considerations include aspects such as:
Whether or not you already own and live in your home
If you’re a first time buyer or first time landlord
Your tax band
Size of your deposit
You’ll normally need to save up a bigger deposit than if you were buying a property to live-in, i.e. normally 25% although some lenders may be able to proceed with as little as 15%. Please note that putting down a smaller deposit will mean a higher interest rate and fewer lenders being able to consider helping.
As well as needing a larger deposit, potentially at least 25% of the purchase price, don’t forget to budget for initial one-off costs such as mortgage arrangement fees, valuation fees, legal fees, stamp duty, letting agency fees and additional tax on rental income.
As with residential mortgages, a bigger deposit will normally mean lower interest rates and more lenders willing to consider helping.
For more information, please get in touch and we’ll be happy to search across the market and help you secure the best mortgage offer possible.
Costs to consider with a BTL.
Should you set up Limited Company for your BTL?
The 5 step process of getting a BTL mortgage:
Step 1:
Seek tax advice to establish if you wish to hold property in personal or Ltd. company name?
Step 2:
Seek advice from Carbon regarding deposit requirements and how lenders calculate mortgage borrowing.
Step 3:
Find a property and agree terms. Is it an House of Multiple Occupation (HMO) or standard BTL?
Step 4:
We confirm specific lending options and submit an application on your behalf.
Step 5:
We liaise with all parties until completion.
*Please note that some forms of Buy-To-Let mortgages are not regulated by the FCA.