Buy to Let
Whether you are looking to buy your first Buy to let property or are adding to a portfolio as an experienced property investor then getting the best advice is key.
Call us at DWM Mortgages and we can discuss your needs and requirements and find the best deals for you with free initial whole of market advice with no obligation. It could not be simpler. Most landlords are looking for additional income and/or potential capital growth, either way the mortgage deals are key. Like any investment, buy to let comes with no guarantees, but for those who have more faith in bricks and mortar than stocks and shares this could be the better option bringing you an income now and in retirement. Not all Buy to let mortgages are regulated by the FCA, but we can guide you through this and the whole process.
Where do I start?
There has been so many changes to Buy lets over the last few years that it can be a bit of a minefield out there but as a general guide these are a few of the basic tips.
Research your areas & location
Looking at areas where there is a strong rental presence, location to transport links, good schools for families, university, or colleges nearby. Asking yourself these simple questions might sound simplistic, but they could be one of the most important aspects of a successful Buy to let. Estate agents are a good source of information on different areas and what realistically achievable rents are so do not be afraid to ask.
Speak to others
Speak to other people who have rental properties, there experience could be beneficial.
Rent is key
Rent is now key to borrowing capacity, along with personal tax positions. The higher the rental yield the better for profits and the more the lenders will agree to lend. We can take some basic details and let you know what is possible before you start looking to avoid disappointment later on.
How hands on?
Consider how hands on you want to be. Some landlords want to do it all themselves whilst others may live in different areas to the property they purchase or want to take a back seat so would rather a letting agent looks after the property. You must factor in the monthly cost of this as they do vary. Call around local letting agent and see what they offer for the percentage they will take.
Don't forget stamp duty
Stamp duty is often forgotten or believed to not be applicable for Buy to lets but you will be charged this tax. Not only is there stamp duty like a normal house purchase but an additional 3% surcharge for owning a second property. We can help you calculate this, or a simple online calculator will show how much is payable.
Different products for different rentals
Remember there are different products for different types of rentals and often the mortgage contract may restrict the usage so be clear from the start if you intend to rent to one family, Students, HMO’s, or holiday lets as each are different products. We can advise on all of these, so you get the right product for your new purchase.
Individual private name or Limited company?
Buy to let’s can be set up in individual private names or Limited companies. Again, these are different products. Limited company Buy to let’s have increased in popularity since all the tax changes, but you must take independent specialist property tax advice to see if this is best for you as everyone’s situation is different.
Do the maths
Before committing to buying a property sit down and check all the costs associated and the likely rent you will achieve. Speak with us to get an idea of mortgage costs so you can work out if the property will be profitable.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Can I rent out my current home and buy another property?
You may wish to keep your existing home and raise funds to put down on a new purchase. This is known as a Let to Buy and can be arranged to complete alongside a new purchase. Requesting Consent to let from your current lender is another option. For a fee they will agree for you to rent out the property, if for example you move area for a new job or move in with a partner, it is a requirement of most mortgage contracts to get this agreed with the lender if you intend to rent your current home out. This could be a good option if you are not raising funds, but it is always a good idea to take advice from a Mortgage Broker before considering any option to make sure it is the best choice for you and your situation. Getting it right first time could save a lot of time and money.
Mortgage & Protection Advisors
Searching for the ideal mortgage, insurance, solicitor or generally managing your wealth can be a daunting experience.
As an independent broker our services & advice are impartial in helping you find the perfect financial solution that suits your needs… Enter your details below & we’ll be able to get you on the right track straight away!
We offer free initial advice, with no obligation.
how much are you looking to borrow?
use our mortgage calculator
Our mortgage calculators and tools are designed to help make things easier for you. They’ll give you an idea of how much you could borrow and see how changes to your mortgage could affect your repayments.
Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it.
Mortgage & Protection Advisors
Searching for the ideal mortgage, insurance, solicitor or generally managing your wealth can be a daunting experience.
As an independent broker our services & advice are impartial in helping you find the perfect financial solution that suits your needs… Enter your details below & we’ll be able to get you on the right track straight away!
We offer free initial advice, with no obligation.