Discount Mortgages are dynamic specialist buy to let mortgage brokers and are have exclusive products from the various packagers we use. Our mortgage sourcing systems are updated daily and allows us to compare thousands of buy to let mortgages in no time. Discount Mortgages will then select the best buy to let mortgage to suit your individual circumstances up to 85% ltv. Discount Mortgages also has access to products without age limits and for clients with previous adverse credit. So regardless of your age or have a tarnished past you can invest in property or or get funding subject to status.
Discount Mortgages aim is to give you a mortgage decision in principal within 24 hours or quicker if possible. Some lenders also offer a Fast Track mortgages subject to status which can mean the only thing required from the lender is the valuation for the offer to be produced. This speeds up the whole process and can mean the difference when in a race with another interested party for that property of your dreams.
At Discount Mortgages we are committed to the highest level of customer service and speed which gives us the edge on most of our competitors. From your initial contact with Discount Mortgages you will deal with a qualified consultant who will guide you through every step of your buy to let mortgage.
To ensure that your application is processed as quickly as possible we use up to date software to track all cases and chase any outstanding documentation. We will also give you text alerts at each key stage inc mortgage submission, valuation being instructed and case offered. Our case management software now enables our customers to log in remotely and get updates themselves without the need to speak to a broker or admin staff. This is a true enhancement to our clients experience with Discount Mortgages and a major unique selling point for us as a company.
- In most cases lenders expect to see the rental income covering the interest only mortgage at 120% (i.e. if your mortgage repayment is one hundred pounds a month, the rental income must be in excess of one hundred and ten pounds per month). Rental income can start at 100% of the mortgage payment but may mean you pay a slightly higher rate of interest. We now have access to a lender offering 85% LTV.
- UK Buy to Let mortgages are generally assessed on the expected rental income of the property, however in some cases your salary will be taken into account depending on the individual lenders requirements. This option is great for some clients as the property may have excellent capital growth but poor rental income.
- All types of loans are available for Buy to Let customers including Interest only, Repayment and Flexible mortgages.
Best Buy to let mortgages – click here to get a free no obligation quick quote, or call one of our advisers free on 0800 298 0678 who will be able to assist you further.
Buying a Property to Rent Out using a buy-to-let-mortgage
Soaring house prices, increased demand for rental property and better legal protection for private landlords have made buying a property to rent out to tenants an increasingly popular investment option for many people. Low interest rates have made repayments more affordable, and rental income can look attractive compared with the return on other investments.
Discount Mortgages offer a wide range of specialist loans for people interested in buy-to-let properties.
What is a buy-to-let mortgage?
These mortgages were created for existing homeowners or first time buyers who want to buy a property for the purpose of letting it out. Although they are similar to other mortgages, there will usually be other conditions attached. The lender will accept a lower loan to value and may also specify requirements regarding length of letting terms and minimal rental income as a percentage of property value. Most lenders will also you to require you to have an income to cover periods of rental voids. We currently have three lenders where no minimum income is required with very competitive rates.
How can I get a buy-to-let mortgage?
Not all High Street lenders will be interested in helping you obtain a “buy to let” mortgage. Discount Mortgages can advise you on several schemes available from top lending sources, and at competitive interest rates.
How much can I borrow?
When deciding how much you can borrow, some lenders may take into account the rent you will earn, as well as your own income. As a general guide, bearing in mind the semi-commercial nature of this type of loan, lenders will normally lend 75%-85% of the property valuation. It may be possible to raise some or all of the deposit needed by considering a remortgage on your existing property.
What to consider when buying an investment property
- Are there busy main roads near the property you are looking to purchase?
- Is there off street parking at the property?
- Are the streets well lit for security and safety?
- How far is the nearest bus stop and how frequent are the buses?
- How far is the property from pubs, clubs, bingo halls, sports centre?
- Is there a local school to the property and how well is it rated with Ofsted?
- Is there a local shopping centre and major supermarket?
- Is there a low or very high crime rate in the area?
- Is there a local hospital or university which is excellent for letting out to doctors or students?
- How much is the Private and DSS rent for properties in the area?
- Is there any regeneration or investment planned for the local area which could mean the property may increase in value or area more desirable in the future?
Will I have to pay a higher mortgage interest rate?
Buy-to-let mortgages are generally slightly more expensive than ordinary home loans but you can do interest only.
Can I get tax relief on a buy-to-let mortgage?
No, but you can offset interest payments on your mortgage against tax on rental income, along with other expenses such as agents fees, insurance, service charge, ground rent and maintenance costs. (New rules apply for higher tax payers from 2017 so check with your accountant)
Is the process very complicated?
As long as you receive the correct advice and assistance, buying a property for renting out is generally a very simple process.
HMO Mortgages & Law around them
While the new laws should not affect landlords’ profits, failure to comply with these laws will result in large fines. The same is also true of mortgage laws relating to houses of multiple occupancy (HMOs). There are new laws governing how investors must manage these properties. Typical HMOs and large student residences or single working or dss tenants, but they can be any similar building where toilet and cooking facilities are shared. There are now investment mortgage guidelines relating to the standard of facilities within the building. The introduction of these investment mortgage laws into the Housing Act has seen many landlords get rid of their HMOs in favour of other types of property, though there have also been many who have seen this as an opportunity to invest. Most HMO properties will require a HMO license which can be obtained from the local council. Each room size would need to meet building regulations along with other building regulation requirements including linked smoke alarms, emergency lighting, self closing fire doors etc. Along with the usual gas saferty cert and electrical cert a yearly maintenance will be required on the fire alarm system.
Discount Mortgages has extensive experience with HMO mortgages and can also provide comprehensive building and contents insurance. As these properties can be high maintenance it is advised to take out good landlords home emergency cover for your boiler and plumbing systems. At this time HMO property purchases are very popular as they can offer high returns. You are typically responsible for all utility bills inc gas,electric, water and council tax. If you are in breach of your HMO licensing agreement you can get fined up to £5000 for each breach so ensure you do regular inspections on your property. Don’t let this put you off as you should be ensuring the property is safe at all times for all residence. Fire hazards are one of the main concerns of the local authorities. While there are not many lenders offering HMO mortgages at the moment new entrants are expected to enter the market in 2012 with higher LTV’s and competitive rates. When looking for the right HMO mortgage call Discount Mortgages as you will be well looked after. Current maximum LTV is 75%. During 2012 it is expected that new lenders into the market will offer 80% LTV HMO mortgages. If your looking for a broker who has access to all the lenders with HMO products then look no further. We just don’t offer HMO mortgages we have hands on practical experience in HMO properties.Discount Mortgages are experts at sourcing the best possible deals for our clients from a wide range of lenders. Use our Online Enquiry Form to receive a NO OBLIGATION illustration of the loan solutions that best suit your personal needs and circumstances.
Buildings insurance will be required on all properties purchased. Discount Mortgages also have access to specialist landlords cover for Private or DSS tenants.
Click here to get a free no obligation quick quote, or call one of our qualified advisers free on the mortgage broker hot line 0800 298 0678 or 0203 697 6474 where we will be able to assist you further. Our priority is you.
Regardless of where you live in the UK, whether your looking for a buy to let mortgage in London, Manchester, Birmingham, Leeds,Glasgow, Sheffield Bradford, Edinburgh, Liverpool, Bristol, Wakefield, Cardiff, Coventry, Nottingham, Leicester. Sunderland, Belfast, Newcastle upon Tyne, Brighton, Hull Plymouth, Stoke-on-Trent, Wolverhampton, Derby, Swansea, Southampton, Salford, Aberdeen, Westminster, Portsmouth, York, Peterborough, Dundee Lancaster, Oxford, Newport. Preston, St Albans, Norwich, Chester, Cambridge, Salisbury, Exeter, Gloucester, Lisburn, Chichester, Winchester, Londonderry, Carlisle, Worcester, Bath, Durham, Lincoln, Hereford, Armagh, Inverness, Stirling, Canterbury, Ripon, Bangor, Truro, Ely, Wells, Enfield, Tottenham, Barnet, Wood Green or St Davids Discount Mortgages can help.Your home maybe repossessed if you do not keep up repayments on your mortgage or loan secured on it.