Buy to Let Guide

Finding the right buy-to-let mortgage can be a daunting task. But don’t worry! Our reputable mortgage team can swiftly find you the most exclusive deals, while providing prompt, worry-free services doing all the hard work for you.

In this guide we cover,

Buy to let
Buy to let mortgage broker
Cost of buy to let

What does buy-to-let mean?

Buy-to-let means pretty much what it sounds like: a buy-to-let property is a property that you purchase or remortgage to rent out without any intention to live there.

If you are thinking about renting your current home and purchasing a new residential home, you will need to convert your current mortgage as a let to buy mortgage.

Buy-to-let is generally regarded as a specialist market with various lenders and advisors available.
You can check the latest buy to let rates here.

Landlords frequently use buy-to-let mortgages for property investments as a popular way to earn additional rental income.

Do I need a buy to let mortgage broker?

When you are looking to purchase or remortgage your buy to let property, it is always suggested to use a mortgage broker. Some may prefer to go to the lender directly to save on mortgage broker fees.

But MariannaFS is fee free mortgage broker.

Unlike many mortgage brokers, we do not charge fees to arrange mortgages.

Mortgage brokers have access to a wide range of specialist buy-to-let mortgages available to first-time landlords, self-employed and contractor workers.

Buy-to-let mortgages have seen several changes recently, including the increase in rent and loan ratios.

A good mortgage advisor can help you to get the best mortgage deal for your circumstances, leading you through the entire process of your application from start to finish.

Banks, on the other hand, show you only mortgages available through them, meaning  you wouldn’t know if you could snag an even better deal with another bank, which is one reason why brokers are so important.

Cost involved with a buy-to-let mortgage?

1. Higher deposit 

The minimum deposit for a buy-to-let mortgage is higher than usual: most buy-to-let mortgages require a deposit of around 25%.
Some lenders may offer 20% deposit mortgages but at a higher interest rate.

2. Empty period

You may have to keep your buy-to-let property empty for some time before you find a new tenant.

With buy to let mortgages, cash flow is very important. While you have an empty property, you still have a mortgage to pay and other costs to cover.
Most of the time, buy to let mortgages are on interest only to keep the monthly cost low.

3. Higher Taxes

Several new tax changes have affected buy-to-let profit margins.
Until recently, private landlords in the country were allowed to deduct the mortgage interest payments from their tax liability.

Due to these changes, the buy to let profit margin has in turn altered.

4. Higher stamp duty

The government imposed a stamp duty surcharge of 3% on buy-to-let properties and second homes across England, Northern Ireland, and Wales.

According to this rule, landlords are required to pay additional stamp duty on the entire property value.

It is also important to note that this surcharge needs to be paid over the general stamp duty rates.

These are some of the costs involved with buy to let.

Speak to our buy to let mortgage broker and team to help you with your mortgage needs.