Most lenders require a 25% deposit with some offering a 20% deposit at a higher rate.
Investing in your first property for capital appreciation or rental yield or Seasoned portfolio Landlord. Buy To Let mortgages have seen a dip in recent years largely down to new tax legislation and affordability stress rates introduced by lenders.
The two main factors taken into account on a Buy To Let mortgage would be the value and the rental value of the property. These two values are taken from the lenders independent surveyor on the valuation of the property.
Once the figure for the rental has been determined, the lender will then calculate the amount of capital they are willing to lend. Each lender has their own stress rates and calculations however,the tax band of your current income and most likely the gross rental is taken into consideration.
For the best market rates Loan To Value plays a key role in securing the best rate. 50-60% LTV would normally achieve the best BTL rates.
Our advisors can guide you through this process with weighing your preferences and options available to you.
If you are looking to downsize or buy a larger property and plan to keep your existing property it would be possible to change your existing property to a Let to Buy with having a simultaneous purchase of your new residential home.
