Maximising Buy to let Borrowing:
Buy to let mortgages are generally assessed based on the rent that a property is likely to achieve on an unfurnished basis. There are exceptions to this and some lenders will also lend to applicants who want their personal income to be taken as the means of guaranteeing the mortgage payments.
Many property investors are looking at ways of maximising the borrowing that they can achieve on a given property so as to reduce the amount of capital that they need to put down as a deposit. The benefit of using a mortgage to reduce your own capital input is known as gearing and enables you to lever someone else’s money to maximise your potential return. (graph from http://www.1stpropertyinvestment.co.uk/Making-Your-Money-Work-Harder.aspx ?)
Given the rise in property prices in recent years, lenders have had to adapt their product offerings to meet the demands of landlords. These demands generally revolve around a desire to minimise the deposit required for a buy to let mortgage, and to maximise the potential loan from a given rent. At Fee-Saver Mortgages we have access to lenders who will lend 90% buy to let mortgages against the value of a property. Lending criteria is often more flexible for applicants who have a mortgage track record, and for those who have a recent history of paying a buy to let mortgage. Two schemes that are currently proving very popular are as follows:
- 90% buy to let mortgage with no proof of rent required
Available to applicants who have paid both a residential and buy to let mortgage for at least the last 12 months.
- 85% mortgage with rental cover only required at 75% of mortgage payment
Available to applicants who have held a residential mortgage for 12 months with no missed payments.
For a full breakdown of the deals that are available to you just fill in one of our enquiry forms and a buy to let specialist will contact you to discuss your requirements. Alternatively, call us on 0800 0435760. |