Need help to source a buy to let mortgage for 2017?

Mortgages on buy to let property are in the main very similar to residential mortgages. In April this year mortgage regulation changed making a BTL mortgage a bit more challenging to achieve, and this situation will continue into next year. For the smaller scale investor, not deriving their income from rent, it is proving more difficult to get mortgage approval, as products are now subject to increased regulation and affordability checks. 

Prior to regulation assessment had been based on the rent charged, which had to be over 125% of the monthly mortgage repayment, however many lenders have upped this figure to 145%. 

Generally speaking, buy to let rates are set higher than residential rates, which makes shopping around the market for the very best deal crucial, if you are to get the most competitive mortgage offer.

A deposit for a buy to let mortgage is usually a minimum of 20%, however with changes to buy to let in the form of the stamp duty increase, the removal of mortgage tax relief and increased regulation, lenders may start to ask for more from 2017.

Usually fees charged are quite high too, a percentage of the mortgage advance is usually asked for and fees can be as much as £4,000. It is therefore vital to consider this when choosing a product.

To discuss your for mortgage options for next year call one of our advisers for impartial advice.

At Deal Direct we are regulated to offer independent mortgage advice but not general financial advice. Therefore, if you wish to discuss the suitability of property as a viable investment, we urge you to contact an independent financial adviser. 

Please note: 

Buy to let mortgage applications from:

• applicants whose intention is to benefit from house price growth
• applicants whose intention is to benefit from rental income
• applicants who are letting to buy

will be treated as normal buy to let and not as a consumer buy to let. In addition, their subsequent remortgage applications will also be treated in the same manner.

For free, impartial and ‘whole of market’ advice contact Deal Direct.

Speak to us today on 0800 048 8828.