Buy-to-let Mortgage Broker in Essex

Goldmanread is a leading mortgage broker supporting individuals and limited companies with their buy-to-let mortgage needs. Our experience over many years means that we know the rental market inside out and are able to advise clients on the best way forward when arranging buy-to-let mortgages.

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What is a buy-to-let mortgage?

A buy-to-let or rental mortgage is used to purchase a rental property. The main difference between a standard residential mortgage and a buy-to-let one is that the mortgage amount is based on the rent the purchased property is expected to generate.

At Goldmanread, we can help you arrange a buy-to-let mortgage as an individual or through your limited company. With access to a wide range of rental mortgage products and connections to specialist mortgage lenders, we can help you source the best possible rates for your next buy-to-let mortgage. Contact us today and get started.

Buy-to-let mortgage rates

Mortgage rates on buy-to-let properties are similar to those available on standard residential mortgages in the sense that they can be fixed-term or variable. However, lenders tend to view buy-to-let lending as more of a commercial loan and, as such, may offer higher rates than a standard residential mortgage.

Rates on mortgages arranged under a limited company name will also tend to attract higher interest rates.

Our dedicated team of mortgage brokers have access to an extensive range of mortgages across the market and can provide you with some of the UK’s leading buy-to-let mortgages. We will source lenders that offer the most competitive mortgage interest rates, meaning your mortgage payments will be as low as possible.

Buy-to-let mortgage application process

If you are looking to secure a buy-to-let mortgage, then the typical application process will be as follows:

  1. Carry out a property search to locate and find the specific property you wish to buy.
  2. Get an idea of the rent the property will likely generate. This will involve using online property portals to see what similar properties have been rented for. In addition, it is worth talking to letting agents in the area to try and get a feel for the likely rental income and competition for property in the local market.
  3. Once a property has been located, and you have an agreed-upon offer, you can start the full application process. Our professional mortgage brokers will be able to assist and advise you throughout this process and help you secure a competitive mortgage deal. At this stage, it is important to decide if you wish to buy in your own name or as part of a limited company.
  4. When applying to a lender, you will have to provide details of your ID, income and background credit history so that the lender can check any other debts you may already have. Although the mortgage is primarily based on rental income, many lenders will still expect you to earn a minimum employed or self-employed income. In addition, if you own other buy-to-lets, you need to confirm whether you fall into the definition of being a portfolio landlord. If this is the case, lenders may request further supporting information.
  5. Once an application has been made and a mortgage has been agreed upon, then a rental valuation will be instructed. In the case of most purchase applications, this will be based on the market rent that the surveyor expects the property will achieve. If you are applying for a remortgage, the surveyor will tend to work off of the actual rent being received. Although, in some circumstances, they will consider the market rent, whether this is lower or higher.
  6. Subject to the above being satisfactory, the lender will then issue an Offer Letter. This whole process can take around 2-3 weeks.

Buy-to-let mortgages for working professionals

Most lenders consider working professionals a particularly attractive segment of the mortgage market for buy-to-let mortgages. This is because they will have a good income and, generally, a good credit history.

Many professionals view buying an investment property as an additional way to achieve financial stability. Some of them may even decide to purchase a BTL property through a limited company, as this can make the investment more tax efficient.

Why choose Goldmanread to source your buy-to-let mortgage?

Goldmanread has been involved in the buy-to-let market for many years. We have extensive experience with various buy-to-let properties, including limited company mortgages. We can provide you with the right mortgage advice so that you can make the most of your rental investments.

To find out more about how we can help you to source the best deal on your buy-to-let mortgage, contact us to arrange a free initial consultation.

FAQs

Can I live in my buy-to-let mortgage property?

Most mortgage lenders will not allow you to live on the property. Doing so will contravene the terms of the mortgage and may well lead the lender to repossess you.

Some buy-to-let mortgages are specifically aimed at people wanting to provide a home to family members. These are termed a Family BTL mortgage (also known as a regulated buy-to-let property). This is because they fall under additional regulations, which means they are more tightly controlled by the Financial Conduct Authority.

In some circumstances, such as Holiday Let mortgages, the mortgage holder may be able to use them for personal use. However, this will tend to be for a limited period each year, and the policy will depend on the specific criteria the mortgage lender offers.

What are the risks of a buy-to-let mortgage?

There are several risks to be aware of with buy-to-let:

  1. Void periods – The property may experience a void period, i.e. periods of time when it may be un-let. The mortgage still needs to be paid during this period, and some people may struggle to afford both their main mortgage and the buy-to-let.
  2. Regulations – There are a number of regulations around letting property which most people may not be fully aware of, but can add to the administrative burden of owning a buy-to-let and the associated costs. These include electrical and gas safety inspections, Energy Performance Certificate provisions, to ensure that the property meets certain minimum environmental standards, and the provision of specific documentation when renting out the property.
  3. Finance risk – If mortgage rates rise above the level attained when the property was initially purchased, the repayments may be too expensive, as the costs/mortgage payments may exceed the rental income.
  4. Taxation – There are several taxation issues attached to buy-to-let properties, such as tax on income, stamp duty on purchase and Capital Gains Tax on disposal. Currently, limited company mortgages continue to offer certain tax advantages over standard buy-to-let, but the Government can change these at any time.
    Goldmanread is not qualified to provide taxation advice, and we would recommend that you speak with a suitably qualified accountant or Tax Adviser if you are thinking of becoming involved in the buy-to-let market.
  5. Unregulated mortgages – Most rental mortgages are unregulated, so you may not be protected by the UK regulatory regime. This is why it is essential to seek mortgage advice so that a broker can assist you through the whole process.

Can a first-time buyer purchase a buy-to-let property?

Most lenders will not consider a rental mortgage for first-time buyer clients. The reason for this is to avoid mortgage fraud. In the past, first-time buyers have tried to circumvent lenders’ affordability restrictions by arranging a larger mortgage based on the expected rent rather than the applicant’s own salary.

However, there are many other suitable mortgage products available for first-time buyers.

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Why should you choose Goldmanread for your mortgage?

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We believe that professionals deserve an extremely high level of personal service when choosing their mortgage and we pride ourselves on treating each customer as an individual, not a number! Our clients couldn’t agree more and are happy to recommend us.

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Contact us to discuss your buy-to-let mortgage

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We’d be delighted to discuss your mortgage and insurance requirements and get an understanding of your individual goals. Feel free to phone or message to arrange a call back or appointment.

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