BUY TO LET MORTGAGE

Buy to let mortgages and loans are currently offered at 75% loan to value, though in some cases 100% of the purchase value can be obtained with additional security.

As house prices have risen over the past five years so the buy to let property market has become very popular with investors since the government offer UK buy to let property owners welcome tax benefits.

Rental income is considered in the same way as salary, so tax is generally assessed at 22% or 40%. Landlords are able to deduct costs for the taxable portion of their rental income which includes the interest portion of their buy to let mortgage repayments, as well as maintenance costs on the property.

Redrock have access to a broad range of buy to let mortgage lenders who can offer products to cater for most circumstances. We can arrange buy to let mortgages for a single property, right up to multi-unit portfolios.

The interest rates and fees offered on a buy to let mortgage are on average slightly higher than those for an owner-occupied mortgage. This is due to the perception amongst banks and other lending institutions that buy to let mortgages represent a greater risk than residential owner-occupier mortgages.

Lenders calculate how much they are willing to loan using a different formula than for an owner-occupied property. For an owner-occupied property the calculation is typically a multiple of the owners’ annual income.