Buy to Let Mortgages in Derby.
Buy to let mortgages are for landlords who want to buy a property and rent it out.
As with regular mortgages, buy to let mortgages come with their own set of rules and regulations. We will walk you through how they work and what mistakes people usually make when applying for a buy to let mortgage.
No Broker Fee
Pay no broker fee when you consult or get started with us.
Minimum Paperwork
Get with the process with very minimal paperwork and get the work done
Best Market Deal
Getting the best market deal, also find the best deal from your current lender
Who can get a buy to let mortgage in Derby?
You can take out a buy to let mortgage under the following conditions:
- You want to invest in residential property.
- You are comfortable taking a risk with property investments
- You own your home already, whether you have an outstanding mortgage or not.
- You have a solid financial status and credit history
- You shoud be earning 25k plus to have a chance of being approved for a buy to let mortgage
- It is unlikely that you will be approved for a loan if you are over 70 years old
Contact our expert team for buy to let mortgage advice in Derby
How do buy to let Mortgages work?
If you are purchasing a property with the aim of renting it out, it is a different mortgage to a regular one. There are some key differences between them:
- A buy to let mortgage usually has higher fees
- The interest rate is usually higher
- The minimum deposit for a buy to let mortgage is usually 25% of the property’s value. That said, it can vary between 20% – 40%.
- Buy to let mortgages usually interest only, which means you pay the interest each month and not the capital amount. Although at the end of your mortgage term you will repay this original loan in full.
The same regulations apply to buy to let investments as with a regular residential mortgage
How much can I borrow?
The maximum you can borrow is linked to the income amount projected from your rental property.
Lenders usually need the rental income to be 25–30% higher than your mortgage payment.
To work out what renters might expect to spend on rent, try talking to professionals in the tenant market or find median pricing for houses in Derby
Our Services
Fast & Bespoke Mortgage Advice in Derby
We love helping all our customers, especially the ones who really need Mortgage Advice in Derby – it’s not just about finding a mortgage. It’s about the journey, we will help you through the full process.
First Time Buyer
Buying your first home can be a little bit daunting, but we’re here to help with all the challenges of finding your perfect place.
Remortgages
Looking for a better mortgage deal? The process is often not as easy as it first appears.
Moving Home
Thinking of selling your existing property and moving to a new home? It’s important that you try and budget accurately.
Buy-to-Let
This can be one of the popular mortgage options available for those wishing to invest in residential & rental property.
Call us today!
To speak with a mortgage advisor, book your FREE mortgage appointment online or give us a call.
Where to get a buy to let mortgage?
Most big banks and lenders offer buy to let mortgages. A broker such as ourselves can provide you professional advice and expertise as to which lender to choose.
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Frequently Asked Questions
How much deposit do I need for a mortgage?
A minimum deposit is required for purchasing a property in Derby. High street lenders typically require a 5% deposit. A higher deposit may be required if you have had credit problems in the past.
Can I get a mortgage if I am self-employed?
Yes, however, you must submit at least one year’s worth of accounts. To compute the maximum mortgage, most lenders in Derby use your salary and dividend, while others may use your net profit.
Can I get a second mortgage?
Second mortgages are possible. This includes debt consolidation and home improvements. A second mortgage can also be obtained on a second property, but only if it is for the owner’s personal use, a family member’s use, a holiday home or a rental property.
How long does the mortgage process take?
It will take about an hour for our free mortgage consultation in Derby. Upon completion of your consultation, we can arrange an agreement in principle for you in about 24 hours. A formal offer takes about three weeks.
What documents do I need to send you?
You must provide three payslips to prove your income if you are an employee. You will need to supply the latest 2 years’ accounts if you are self-employed in Derby. Additionally, you must provide proof of identity, address, and three months of bank statements.
How long will an agreement in principle be valid for?
An agreement in principle typically lasts between 30 and 90 days, but it can vary based on your lender. It is quite simple to renew an agreement in principle if it expires.
I have bad credit, can I still get a mortgage?
You can do it, but it will be harder. By putting down a higher deposit, perhaps 10% or 15% of the purchase price, you can demonstrate that you can afford a mortgage.
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