Buy-to-let
If you are looking at buying an investment property or are already a landlord and are looking to purchase another property or re-financing, you will require a buy to let mortgage.
We work with many landlords to help them with their buy to let mortgage needs. Whether it is a first time landlord, through to those who have a large property portfolio, either buying in their own name or via a limited company structure.
Sterling Private Finance will work with you to ensure you aren’t paying more than you absolutely need to for your buy-to-let mortgage, so you receive the very best returns from your investment property. If the rate you are paying on your mortgage is higher than it should be, this will impact the income you receive on the property.
Buy to let mortgages differ from residential mortgages in a number of ways. For example the minimum deposit is usually 25% of the property’s value although it can vary between 20% and 40%.
The maximum you can borrow is normally linked to the amount of rental income you can expect to generate from the property. Lenders generally expect the rental income to be 25% to 40% more than the monthly mortgage payment, Some lenders can look at your personal income to increase the loan amount.
In a lot of cases the mortgage will be interest-only for buy-to-let mortgages, as landlords are looking for the lowest monthly payments so they make more of an income from the property, and will repay the capital amount at the end of the term by selling the property (although repayment options are also available).
Generally, some forms of buy to let mortgages aren’t regulated by the Financial Conduct Authority (FCA) unless you intend to let the property to a close family member. These are known as consumer buy-to-let mortgages and the same affordability criteria will apply as a mortgage for your own home.