Buy-to-Let Mortgages
A buy-to-let mortgage is very different than the mortgage you may have for your own home. For a start, the amount you can borrow depends largely on the rental income you expect to get from the property, although some lenders consider other income you receive in some circumstances. As a guide, many lenders specify that your rental income needs to be 25% to 45% higher than your mortgage payment.
Rental Yield
This is the income received from tenants in rent payments. Rental yield is used to indicate the value of properties as an investment – the higher the yield, the greater the return. As rental market conditions improve over time (e.g. investment in new transport links), rental yields can be increased by raising rent.
Capital Growth
This is the amount by which a property’s value increases over time. Capital growth can be triggered by a variety of factors, including redevelopment plans, interest rates and the housing market itself.
Why invest in a BTL property?
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What’s involved in buying to let?
Monthly rent provides tangible returns on investment. Potential for longer-term capital growth. As housing prices fluctuate, tenants are committed to renting properties. With an increase in demand, the rental yield is potentially higher which means void periods of lettings are highly unlikely.
Portfolio Finance
Property Portfolio Finance
Professional investors and private landlords with more than one buy to let property often require specialist funding to enable them to expand their property portfolio and ensure it is delivering the best returns possible.
Using separate buy to let mortgages on each individual property can not only be more expensive than alternative funding but can also restrict the ability of the investor to leverage the full extent of their borrowing power. Using portfolio finance can help to reduce costs as well as spread the risk across a range of properties and maximise the potential for returns.
At kredi we have years of experience of working with investors and landlords helping them to fund their buy to let portfolios. Whether they have two properties or 100+ we have access to specialist lenders that can provide funding based on their entire property portfolio.
What is portfolio finance and what are its benefits?
Landlords can secure buy to let portfolio finance on all types of property including student lets, houses with multi occupants, (HMO’s), professional lets, company lets, short leasehold properties, and more. There are a number of benefits to obtaining such finance including:
• One mortgage account and one direct debit.
• Allows you to borrow above the value of an individual property.
• Possibility to calculate the overall rental income percentage over your entire
portfolio to support additional property purchases.
• Makes future remortgaging significantly easier if you only have one account to
consider.
Making it easier to manage your property portfolio
If you are looking for a mortgage broker that understands the requirements of a professional buy to let landlord and how to maximise funding from their portfolio then look no further. Give our team of specialist mortgage advisers a call on 0207 112 8896 for more information and advice regarding portfolio finance or get in touch using our contact form and we will respond within 24 hours.
LTD Company BTL Mortgages
Ltd Company Buy-to-let Mortgages
There have been significant changes recently in the buy to let market, particularly surrounding tax relief allowances. For many landlords, both established and prospective, this will put pressure on profits.
As a result, many landlords have set up a limited company from which to trade as the tax changes will not have the same impact. However, this does mean a change in the type of mortgage available for rental properties and the way that these are assessed by lenders.
At kredi our team of experts help both individuals and limited companies find the most suitable buy to let mortgages from a range of specialist lenders. Our experience within this market means we are ideally placed to help professional investors.
Making it easier to build your property portfolio
At kredi we have extensive experience in finding the right buy to let mortgages for our you whether you are purchasing them individually or as a limited company. Give the team a call on 0207 112 8896 or complete our contact form and we will call you back with more information, we guarantee to respond within 24 hours.
LTB Mortgages
Let to Buy Mortgages
How does it work?
If you have sufficient equity in your property you can remortgage using a let to buy mortgage to release some of the equity to part-fund a new home. Your existing property is then let out with the rental income servicing the increased mortgage repayments.
By using this approach, you not only enable yourself to take out a mortgage for your new home but also do not significantly increase your monthly repayments. There are a number of benefits to obtaining a let to buy mortgage including:
• Earning rent from your existing property whilst being able to purchase another.
• Moving the chain process on if selling the property is proving more difficult than
anticipated.
• Enabling you to keep your current property as a long-term investment whilst the
mortgage is paid by rental income from your tenants.
It is important to note that by doing this you will effectively be applying for two mortgages; the standard residential and a buy to let. However, these are applied for at the same time so that the lenders are aware of your current and proposed property purchases.
Making it easier to move without selling your property
At kredi we have extensive experience in finding the right residential and buy to let mortgages for our clients. We are therefore ideally placed to help you with your let to buy mortgage. Give our team a call on 0207 112 8896 or fill out a contact form for more information and advice. We will respond to you within 24 hours.