Buy to Let Mortgages

A buy-to-let mortgage (also known as an investment mortgage) is designed for borrowers who want to let their property out to a third party (i.e. tenants).

More and more people are investing in property as a long-term opportunity to make profitable returns, and as a way of securing finance for their retirement.

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. A wide range of btl mortgage products are now available, including fixed rate, discount, tracker and variable rates.

There are now plenty of competitive buy to let mortgage deals around that are specifically aimed at the buy-to-let market, ranging from special offer buy to let mortgage deals to fixed and variable rate options.

In addition, mortgage lenders will often assess buy-to-let mortgages on the earning potential of the property (i.e. the rental income) as well as normal income.

Are you ready for a Buy-to-Let mortgage?

When you take out a buy-to-let mortgage, you will be expected to meet certain criteria:

Buy-to-Let deposit

You will be required to put down a deposit for buy to let mortgages and this will be typically larger than for a standard residential mortgage - it will likely be 25% of the property’s value.

Rental income

Your expected rental income must exceed your buy to let mortgage repayments by a certain percentage - for example, your mortgage lender may require a rental income of 125% of your monthly mortgage payments.

Investment potential

Buy to let Tips

Finding the right Buy to Let property is the key to a successful return on your investment. Begin by approaching local estate agents or rental agents and asking for advice on local letting trends. Find out what type of property is in demand and how much rental income you would expect to receive. Estate Agents are a great source of information, but remember that they have a job to do; so don’t be surprised if you are steered towards properties in their shop window.

If you are intending to invest in a university town, get in touch with the university Accommodation Offices. They will be happy to tell you which areas are popular with students and the going rental rates. If you follow their advice, they shouldn’t have any difficulty finding you reliable tenants.

Before you buy

When you have found the right property, it’s time to get back in touch with J P Financial. We will work to find the best ways to maximise your returns by sourcing the best Buy to Let mortgage that suits your needs. J P financial know how important it is to get things right first time and we ensure that all our mortgage facilities can be easily increased to reflect rises in the value of your property. This is the first step in building a portfolio of properties.

Before you let

When you have made a mortgage application, we will help you to maximise your rental income by sharing hints and tips on making your property more appealing and finding the right tenants.