Financing Your Buy-To-Let

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 Unless you are lucky enough to be able to purchase property for
cash you will need some form of financing

A buy-to-let mortgage is usually the preferred finance option

So what does a buy-to-let investor need to know about buy-to-let

mortgages?

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 First you must be aware that a buy-to-let mortgage is very different
to a regular residential mortgage

A buy-to-let mortgage lender will generally require that the rental

income covers 125% of the mortgage payments

It is also not unlikely that the lender will require a 25% deposit.

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 You can also expect to pay a larger arrangement fee for the best
rate buy-to-let mortgages.

This is a major investment, a business even, so you must do your

due diligence accounting and be sure that the purchase price and
rental rate numbers add up.

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
Rental yield is a key factor in deciding if you will get a BTL mortgage
AND if you should actually go ahead with the investment!

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 Rental yield is a percentage that measures rental income as a
proportion of the property.

As well as giving you a profit estimate it is also used by financial

institutions as a key factor in buy-to-let mortgages.

If your rental yield calculates at 5% or less, then you need to

seriously consider whether it will make for a good investment.

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
If your rental yield calculates at 5% or less, then you need to seriously
consider whether it will make for a good investment!

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 At a rate of 5% or less it is likely that you will be relying on capital
appreciation to make a return

This is something of a risk in the current property market

So it is important to invest for rental income and not capital growth.

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
So how do you go about getting a good-rate buy-to-let mortgage?

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 The first advice is dont go to your current bank!

It is almost certain that you will not get the best deal on a
buy-to-let mortgage from your current bank.

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
This Is Money identifies the following lenders as consistently the
best lenders to obtain a buy-to-let mortgage from;

Skipton BS
BM Solutions
NatWest
Woolwich
Coventry BS
Platform (part of Co-op Bank)
Accord (part of Yorkshire BS)

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 A number of those lenders are not nationally-known high street
banks or building societies.

It is a mistake not to speak to an independent broker when looking

for a buy-to-let mortgage

An independent isnt tied to a specific company so will offer a wider

and more impartial review of mortgage products.

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 At Sterling Woodrow we specialise in helping new buy to let
investors get a solid start in the property market

We offer a no-obligation, complimentary consultation with one of

our senior portfolio managers to discuss your long-term goals and
ambitions in property investment

Click here to claim your expert consultation today

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222
 Many thanks for your time we hope this presentation was useful.

Click the link below to book your expert property investment consultation

Click here to claim your expert property investment consultation today

Sterling Woodrow, New North House, Ongar Road, Brentwood, CM15 9BB | + 44 (0) 1708 922 222