Buy to Let Mortgages | Remortgaging for UK Landlords
Buy to Let Mortgages are the backbone of the Landlords funding stream, and in recent years has been an enormous growth area with many of the lenders placing new products in the market place, allowing people with little or no capital deposit to invest in property. Some commentators have suggested that this has been one of the main contributors to the sudden and recent downturn in the market, as Landlords falling into negative equity panic and try to sell their properties in a negative market.
This aside, buy to let mortgages are still available to people with good income streams and a healthy deposit. Many lenders are slowly re-entering the Buy to Let marketplace, allowing Landlords to shop competitively for best interest rates and at the best deposit rate.
Whilst attaining new quotes for mortgage loans for landlords can be tough, it is easier to find remortgage deals for UK landlords.
Be aware though, the Buy to Let mortgage market does not perform in the same fiscal model as owner occupied mortgages. Lenders understand the greater risks placed with Buy to Let, and as such add a premium on their mortgage rates to reflect the risk associated with Buy to Let.
This risk has been much published, and with many of the lenders being nationalised, the ability of these institutions to lend ‘recklessly’ is greatly diminished.
Buy to Let Remortgage Finance Considerations
Issues to consider when investigating a Buy to Let mortgage or remortgaging a buy to let property:
- The lenders criteria with regard to income, cash flow, deposit (This is easier for landlords remortgaging property).
- The lenders interest rate to you.
- The profit generated monthly and the period you believe the property will be empty annually and you will have to fund yourself.
- The Capital Gain you will obtain from the property in an upward market.
When you have calculated all the above, you can put an excellent business case to the lender, showing them you are a serious and committed investor.