You may be an experienced Landlord or considering your first buy to let purchase.
With the recent taxation changes and lenders changing their lending policy on an ongoing basis, more than ever it is important to get the right mortgage advice.
At Gatehouse we can help you and have access to a comprehensive range of mortgages from across the market including some products that are not available direct from lenders on the high street.
We can also help manage the whole process by liaising with the Estate Agents, Solicitors, Surveyor and Mortgage Lender.
Please contact us for more information and to arrange a free initial meeting.
What determines how much i can borrow?
The amount you can borrow is determined by the rental income of the property and the amount of deposit you put down. Lenders typically want you to have 25% deposit but this does vary. Criteria is different from Lender to Lender with regard to rental income, deposit amount, your personal income,age, Credit history, etcHow much deposit
You will need a deposit of around 25% of the purchase price.
This does vary from Lender to Lender and is also influenced by the rental income of the property.Different Mortgage Types
Standard variable rate (SVR) is the interest rate a borrower is charged on their mortgage by the lender if they are not on a specific mortgage deal. The rate is subject to fluctuations i.e. the monthly payments can go up & down. The lender does not usually charge an arrangement fee at the outset, or early repayment charges when the mortgage is repaid.
Tracker - Tracker mortgages are variable mortgage rate schemes, but instead of the interest rate you pay being based on your chosen lender variable rate 'it 'tracks' an index, such as LIBOR (London interbank offered rate), or more commonly Bank of England Base Rate. The Interest rate you pay is a set margin above or below the rate that is being tracked, depending n market conditions, and it changes as the rate moves. Currently, with bank of England Base rate so low, the margin is usually above that rate. With a Tracker rate your monthly mortgage payment increases if the rate being tracked increased and vice versa. At the end of the product period, the interest rate will usually revert to the lenders standard variable rate, this usually results in a higher monthly mortgage payment. There may be initial arrangement fees from the lender to set up this type of mortgage and early repayment charges if the loan is redeemed within the scheme period.
Fixed Rate - A fixed rate mortgage fixes your monthly mortgage rate for a set period of time, usually between 1 and 5 years. At the end of this time, the interest rate will usually revert to the lenders standard variable rate. This type of mortgage is popular with clients who like to have stability in their mortgage outgoings for a given period of time. Unfortunately you will not benefit from any reduction in interest rates. There may be initial arrangement fees from the lender to set up this type of mortgage and early repayment charges if the loan is redeemed within the scheme period
Discount - A Discount Mortgage has an interest rate where a discount is applied to the lenders standard variable rate. As the lenders standard variable rate moves up or down the discounted rate moves up or down by the same amount. Discount rate mortgages are often offered for a set period of time, usually between 2 and 5 years. There may be initial arrangement fees from the lender to set up this type of mortgage and If you redeem your mortgage during the discount period you would normally have to pay a redemption penalty to the lender.Do i need to take into account anything else?
You will need to consider the ongoing management of the property, Gas and Electrical Safety, Tax Liabilities, Tenant deposits and ongoing Maintenance.
The Financial Conduct Authority does not regulate some forms of Buy to Let.
Your property may be repossessed if you do not keep up repayments on your mortgage.
We will charge a broker fee of between £0 and £275, payable on production of mortgage offer. The amount we will charge is dependent on the amount of research and administration that is required.