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Buy to let Mortgage Advice.
Buy to let mortgages are for landlords who want to buy a property in the Doncaster area and rent it out.
Just like regular mortgages, buy to let mortgages come with their own set of rules and regulations. In this article, we walk you through how they work and what mistakes people usually make when applying for a buy to let mortgage.
Who can get a buy to let mortgage in Doncaster?
For those looking to take out a buy to let mortgage under the following conditions:
- You want to invest in residential property.
- You can afford to take the risk of investing in property You own your home already, whether you have an outstanding mortgage.
- You have a good credit record and are not in dire need of cash, or desperate for more credit.
- If you earn less than £25,000 a year your purchase may not merit approval with some lenders.
- The age limit for a loan will depend on the type of loan you choose, but generally speaking, most lenders won’t approve applicants older than 70 or 75.
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How do buy to let Mortgages work?
Buying a property with the intention of renting it out is more challenging than an ordinary mortgage. It has some key differences, such as…
- Higher fees tend to be associated with these types of accounts.
- Interest rates for landlords can be 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 kind of mortgages that insurance brokers and banks offer to consumers for buy to let investments is subject to the same regulations as those covering residential housing.
How much can I borrow?
The maximum you can borrow is linked to the income amount projected from your rental property.
Lenders typically need the rental income to be 25–30% higher than your mortgage payment.
To figure out what renters might expect to spend on rent, try talking to professionals in the tenant market or find median pricing for houses in your area.
Fast & Bespoke Mortgage Advice in Doncaster
We love helping all our customers, especially the ones who really need Mortgage Advice in Doncaster – it’s not just about finding a mortgage. It’s about the journey, we will hold your hand 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.
Looking for a better mortgage deal? The process is often not as easy as it first appears.
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.
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Where to get a buy to let mortgage?
Most big banks and a few other institutions offer buy to let mortgages. You should inquire about a buy to let mortgage with your local broker. They will be able to determine the best fit for you before applying.