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ITV Local Mortgages - your buy to let specialist
On ITV and ITV Local there are plenty of programmes dedicated to property improvement and purchasing property as an investment. That’s because of the dramatic rise of Buy to Let as a popular means of investment. More and more people are investing in buy to let properties instead of or as well as conventional investments and pensions.
Like every investment there are risks and it’s vital that you understand these.
- It’s important to do your research about rental demand and levels in the area you are buying in.
- You need to consider whether you employ a letting and managing agent or do it yourself.
- It’s critical that you properly budget as this is in effect like starting a business
- If you are buying an old property, make sure you organise a full structural survey or Homebuyers report.
- Don’t procrastinate when it comes to undertaking renovation work and ensure that you have tenants ready to move in as soon as the work completes.
- Don’t ignore any health and safety requirements, and do make sure that you have a tenancy agreement in place.
The buy to let mortgage market has exploded in line with the demand over recent years. And just like buying your own home, although the factors are different, getting the right mortgage for your property and investment objectives is critical. That’s where a broker like ITV Local Mortgages comes into its own as we have many advisers with years of specialist experience who can advise you of the best deal for your requirements.
How much can I borrow?
In the vast majority of cases the important factor is rental coverage or how much greater than your mortgage payments your rental income is. The market standard is that your rental should be 135% of your mortgage payments but lower multiples are now becoming available. And although traditionally you could only borrow 75-85% of the value of your buy to let property some lenders will now allow 90%. It’s precisely the complex and differing requirements of lenders that mean an experienced broker like ITV Local Mortgages can get the right Buy to Let mortgage deal for you.
Most buy to let mortgage deals vary between (typically) 75% to 85% loan to value (LTV), so this could limit what you can afford to purchase. Mortgage lenders will expect you to be able to predict the rental income you will receive from the buy to let property.
We charge a simple one off fixed fee of £750 for buy to let mortgages and £995 for credit impaired-mortgages.
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Buy to let mortgages are not regulated by the Financial Services Authority.