Best Buy To Let Mortgages In UK

Buy To Let Mortgage Brokers

Firstly these types of mortgages are designed for customers/borrowers wanting to buy property for investment and on this basis there is little protection and the Financial Services Authority do not regulate Buy to Let Mortgages. KPM Financial Services will will provide you with the very best Buy To let Mortgage Advice by usinf one of our specalised Buy To Let Mortgage Brokers.

BTL mortgage (buy to let) is designed for those wanting a mortgage for the purpose of letting the property out to tenants. KPM Financial Services has exclusive access to the Best Buy To Let Mortgage Deals in the UK

UK Buy To Let Mortgages have become increasingly popular over the past few years, driven by increasing house prices, a strong demand for rental properties and a drop in the interest rates available to private landlords. KPM Financial Servies promise to get you the Best Buy To Let Mortgages In The UK.

A Buy To Let will differ from a residential mortgage in 3 primary ways.

• Rent potential - the decision as to whether or not a mortgage will be offered is usually based on the rent you will earn as well as your income. In some cases your income is not considered.
• Interest rate - BTL mortgages can have slightly higher interest rates.
• Larger deposit - typically a minimum of 20% or 25% of the property's value is required as a deposit for BTL mortgages however there are a limited number of lenders who will accept a 15% deposit.

Best Buy To Let Mortgage Deals

Becoming a private landlord should not be seen as an easy way of making money. It is riskier, more complicated and more time consuming than most other forms of investment and there is no guarantee that house prices will continue to rise. That said, letting a second property to tenants can reap considerable financial rewards over time.

When buying a property on a BTL Mortgage you will need to decide whether your primary objective is income or capital growth. In other words, are you looking to make a profit month on month or are you looking to make a profit through increased equity in the property as it increase in value over time. The decision may affect the type of property you purchase, the location and the type of BTL mortgage you take. For example, a prime city centre location may be more suited to high growth.

We will secure the Best Buy To Let Mortgage Deals in the UK to ensure that you are paying the lowest possible premium, this will aid in capital growth.

Interest Only or Repayment BTL mortgage?

Repayment mortgages are the most popular form of mortgage; it is worth remembering that when budgeting your monthly payments on a repayment mortgage that the term taken at the outset can be changed in the future. Many customers are now taking repayments mortgages over 30 or even 35 years to keep their monthly repayments low in the initial years. Interest only BTL mortgage are however becoming increasingly popular for both first time landlords and experienced BTL investors. When the BTL property is not let they benefit from keeping the monthly mortgage costs to a minimum. Many BTL mortgage lenders are happy to offer interest only mortgages with no investment vehicle required.

The additional costs for BTL include:

• Letting agency fees - letting agents charge around 10% of the monthly rent for finding and vetting tenants and an additional cost of around 5% if you require a full management service.
• Ground rent / service charges - applicable to leasehold properties.
• Property's upkeep - maintenance costs for the property.
• Gas/electrical appliances - cost of maintaining appliances and ensuring they comply with any regulations.
• Insurance - building insurance and content insurance for those items provided as part of the rental agreement.
• Furnishing - the purchase of any furniture if the property is to be let furnished.
• Legal insurance - to cover the costs of evicting tenants in the event of non payment.
• Decorating costs - the property may require work ranging from painting to a new bathroom suit before it is suitable to be let to tenants.

BTL Property Tips

• Rental Income should produce enough income to cover the mortgage repayment PLUS give a minimum of 25% additional income (profit) for the investor.
• £500 per month mortgage would mean a rental income of £625 per month
• These are set up usually on an Interest only basis
• You can generally borrow up to 75 – 80 % of the value of the property
• Lenders might put in limits such as a portfolio of 10 properties or maximum mortgages of say 1.5 -2 million pounds
• Potential for decent growth over a 15 to 25 year period
• Use all Buy To Let Mortgage Lenders in the UK

How to calculate the monthly payment based on a BTL rate of 5.49% and the mortgage being £80,000.00.

[80,000 X 4.49% = £299] ÷ 12 (months) = £299.33 X 125% = £374 per month rental income

Buy To Let Mortgage Calculator

Use our online calculators to see what the monthly costs will be these calculators can be used on an Interest Only Basis or a Capital Repayment basis