We are the Buy to Let Mortgage Experts

Step 1: Finding the right property

If you are looking to buy your first Buy to Let investment property, your needs will be very different to that of an experienced landlord.

Step 2: Do your sums

Buy to Let mortgage lenders have strict rental affordability calculations that can restrict the amount you are able to borrow - often by a lot more than expected. BEWARE: if you are a higher rate tax payer, you won't be able to borrow as much as a lower rate taxpayer - this is due to the income tax relief changes effecting the interest payments on Buy to Let mortgages.

Here is an example of how one of the mainstream lenders (The Mortgage Works) works it out:

• £250,000 - Purchase price
• £1,000 - Monthly rental income
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• £183,908 (73% LTV) Max. Buy to Let mortgage (higher rate tax payer)
• £192,384 (77% LTV) Max. Buy to Let mortgage (lower rate tax payer)

All Buy to Let lenders have affordability calculators on their sites that you can use to check your figures, or you can call us on 01424 440410.

Step 3: Calculate the Rental Yield (5%+)

The Rental Yield is the return you make (or expect to make) on a property you either own or are thinking about buying. Buy to Let property owners and landlords use Rental Yield to measure the value of their investments - it's an important calculation.

Here's how to work out the Rental Yield:
Annual Rental Income / Value or Purchase Price x 100.

As a rule-of-thumb the rental yield should be 5% or above. The example in Step 2 gives a Rental Yield of 4.8% - so on the cusp of what is deemed an acceptable return.

Step 4: Get your mortgage sorted

Once you have done your sums and know roughly how much you are looking to buy for and what deposit you have, it's time to sort out your mortgage. There are many factors to consider when choosing the right Buy to Let mortgage. Many lenders place restrictions on things like exposure limits (how many Buy to Let properties do you own), flats above commercial premises, non-standard construction types, social housing exposure, income requirements, home owner status, etc.

Once your mortgage application has been submitted, you can expect a mortgage offer within 2-4 weeks.

We specialise in helping our clients build and manage their Buy to Let portfolio mortgages - give us a call on 01424 440410.

Step 5: Exchange, complete and get the tenants in!

Completion will take, on average, 8-12 weeks - depending on the solicitors and also the sellers own circumstances i.e. is their a related onward purchase that could hold things up?

Once you have completed, it's time to get the tenants in their and start making some money.

We are the Buy to Let Mortgage Experts
We can find and help you arrange your mortgage...it's what we do!

How much you are able to borrow depends on your income, tax status and the rental income

Buy to Let mortgage lenders have strict rental affordability calculations that can restrict the amount you are able to borrow - often by a lot more than expected. BEWARE: if you are a higher rate tax payer, you won't be able to borrow as much as a lower rate taxpayer - this is due to the income tax relief changes effecting the interest payments on Buy to Let mortgages.

Here is an example of how one of the mainstream lenders (The Mortgage Works) works it out:

• £250,000 - Purchase price
• £1,000 - Monthly rental income
---
• £183,908 (73% LTV) Max. Buy to Let mortgage (higher rate tax payer)
• £192,384 (77% LTV) Max. Buy to Let mortgage (lower rate tax payer)

All Buy to Let lenders have affordability calculators on their sites that you can use to check your figures, or you can call us on 01424 440410.

Do some research - try different mortgage lenders.

All the Buy to Let mortgage lenders have online affordability rental calculators, that will give you an accurate [maximum] mortgage amount you are able to borrow. You simply enter the purchase price and rental income income of the property you are looking to buy and the calculator does the rest - most take no longer than 2 minutes to complete. Try a few and see who is prepared to lend you the mortgage you need.

Poor Credit - We have options.

We specialise in helping people with poor credit arrange their Buy to Let mortgages. The rate you pay and the maximum mortgage amount available to you depends on the severity of your credit.

The worse your credit history, the higher the rate you will pay and the smaller the maximum mortgage amount will be.

We are the Buy to Let Mortgage Experts
We can find and help you arrange your mortgage...it's what we do!

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A gas or electricity bill dated no later than 3 months
Last 3 months bank statements

Proof of Income
[employed] Last 3 months payslips
[self-employed] Last 3 years Tax Computations (SA302) & Tax Year Overviews
[both] Last 3 months bank statements showing salary credits