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Financing a buy to let

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Useful articles:

What you need to know about mortgages

Mortgage finance a guide for landlords

 

 

If you have an existing BTL or a BTL portfolio, make sure you know:

  • Current capital values
  • Current rental value 
  • Outstanding mortgage details
  • Income versus costs 
Be clear about your investment objectives eg for a pension, financial freedom,additional income.
Search for professional brokers who have the right qualifications and have access to thousands of different products from a wide variety of lenders, both on the high street or exclusive to brokers.
  Check your broker is experienced with buy-to-let portfolio finance, e.g. has case studies or a specialist.
  Visit your chosen mortgage broker to discuss your portfolio, this isn’t an internet job! 
  Work out the cost of the mortgage over the lifetime of borrowing.
  Don't forget to factor in the 3% stamp duty payable on buy-to-let properties.
Know what implications there are when interest rates change.
Understand the costs of re-mortgaging or selling the property for example,is there an early repayment charge, is the mortgage portable?
Have an "emergency pot" equivalent to three months' mortgage payments to cover for any void periods or unexpected expenses.
Take appropriate tax advice from a suitably qualified accountant.
Your home may be repossessed if you do not keep up repayments on your mortgage. A fee of up to 1% of the mortgage amount may be charged depending on individual circumstances. A typical fee is £495.

 


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