Buy to let mortgages
Surprisingly, there is good news for buy to let borrowers! Lenders have changed their basic formula for calculating the rental income that’s needed to cover a mortgage.
In the past, they asked for rental income of 125% to cover an interest-only mortgage charged at the base rate. But an influx of new products means some lenders are now asking for rental income to equal just 100% of an interest-only mortgage.
What does this mean to you?
Basically it means you have options – like:
- Borrowing up to 90% of the property value
- Relying on 100% rental income instead of 125%
- Basing your application on income rather than rental
- Self Certification
- Options for limited companies and professional landlords
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME. YOUR BUY TO LET PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. NOT ALL BUY TO LET MORTGAGES ARE REGULATED BY THE FINANCIAL SERVICES AUTHORITY.
Savannah Financial Services is an Appointed Representative of Thinc Assured Network Ltd, which is authorised and regulated by the Financial Services Authority. There may be a fee for mortgage advice. The precise amount will depend on your circumstances, although the maximum fee will not exceed 1.5% of the loan amount.
This site is intended for UK consumers only.
