Buy to Let

Buy to Let Mortgages

Buy-to-let mortgages are for landlords wishing to buy a property in order to rent it out. Buying to let is often appealing due to the potential for dual income streams. Not only does the property have the potential to increase in value over time, but it can also provide a regular monthly income that covers the cost of the mortgage repayment. Many of IMC’s clients look to this as a means of planning for their retirement.

Whatever your situation, IMC has a team of buy-to-let advisors that can provide you with a solution tailored to what you need. IMC is able to offer the best service, ensuring our clients get the best outcome at the best price. Contact our advisors today to find out more about buy-to-let mortgages and begin your journey as a landlord.

 

Why buy to let?

Buying a property to rent it to tenants is a common source of income. As housing and rental prices begin to rise, many more people are opting for this scheme to generate sizeable earnings. The income from a buy-to-let property allows for an increase in the property’s overall value, covers the mortgage repayment costs and has the opportunity of creating extra revenue too.

 

How do they work?

Buy-to-let mortgages require a larger deposit than standard residential mortgages. Usually, this is at least 25% of the property’s value. Arrangement fees also tend to be higher on buy-to-let mortgages. Lenders will consider the rental income that the property being purchased can command and this income must exceed the mortgage repayment value by a specified percentage, alongside landlord insurance and management fees.

During the repayment process, landlords will only be paying off monthly interest fees and not the capital, meaning the repayments will be lower. However, at the end of the mortgage term, the landlord will need to repay the whole balance. Landlords are advised to configure a clear strategy on how to do this, contact IMC today for further information and advice.

 

Eligibility

Buy-to-let mortgages have a certain set of eligibility guidelines that differ from average mortgages. You can apply for a buy-to-let mortgage under the following circumstances:

  • You wish to become a landlord and invest in houses or flats.
  • You can afford to take and understand the risks of investing in property.
  • You already own a property, with an existing mortgage or outright.
  • Your income is £25,000 + a year. This is the average minimum income requirement for lenders.
  • You are under 70-75. Lenders have specific age-limits on buy-to-let mortgages.

The IMC team of buy-to-let mortgage brokers can work through different scenarios with you, including mortgage calculations and comparisons. We can also advise on the latest tax implications in the buy-to-let marketplace to inform you on how this will relate to your purchase. To discuss the options available to you, get in touch with the IMC team for tailored buy-to-let mortgage advice and information.

 

Think carefully before securing other debts against your property. Property may be repossessed if you do not keep up repayments on a buy-to-let mortgage. If you need financial advice concerning buy-to-let mortgages, get in touch with the IMC team for advice and information that is catered to you.

Mortgage Calculator

Your payment £1,126 /pcm

Interest Only £657 /pcm

These results are not provided by IMC and are only indicative based on a repayment mortgage product. Repayments will be subject to the product provided and your circumstances

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"Highly recommended
The IMC team have been very supportive over the last 6 years. They have helped us with our home mortgage (when it seemed that no-one else could!) and also our buy to let mortgage and our wills. The team are professional, friendly, very knowledgeable and always accessible."

FionaJ-53 , Aug 2018

Independent review from Yell
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"Excellent Service, Nazira Karim from IMC is professional, quick and efficient. Highly recommended."

Ash Rana , Nov 2018

Independent review from Google
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"I have worked with Jacqui for a number of years and have always found her to be very helpful, knowledgable and quick to respond to all of my (probably daft) questions! I would certainly recommend her and IMC financial."

Roubaix Lerner , Jan 2019

Independent review from Google