Buy-to-let Mortgages

Whether you are looking to purchase an investment property or you own one or more investment properties we can assist.
The buy-to-let market has undergone some tough changes over the last few years with lots of regulation coming into play which has affected the amount people can borrow.

Each lender, whether you are a first-time landlord, multiple landlord, or a portfolio landlord, will have different calculations for lending to you which include a stress test of your overall portfolio.

Here is a brief overview of the different types of buy-to-let investors:

First-time buyer buy-to-let

If you don’t own a property and wish to purchase an investment property then some lenders will allow this. However, there are a number of criteria which typically are based on the location of the property compared to your employment, the value of the property you are buying, the mortgage you are applying for and the rental income that the property would command.

First-time landlord

Most lenders will want you to own a residential property where you live but others may want you just to own a property. Typically the mortgage available is based on a number of factors which include the rental income, your income, the type of property and the type of tenant that you may be putting in place (some lenders don’t favour council tenants).

Multiple landlord – 1-3 properties

If you own 1 to 3 investment properties then you will have access to the majority of lenders in the buy to let market. Given the new regulation lenders will need to stress test your portfolio to see if it meets their internal requirements, each lender is different and should you wish to borrow more or look to expand your portfolio then it is crucial you get the right advice.

Portfolio lending

If you own three or more investment properties you will be considered a portfolio landlord. Each lender for this assesses your overall portfolio under their own internal criteria. This can be exceptionally confusing and what you may apply for as a loan may turn out to be a lot less or a decline by the time the portfolio is assessed. Some lenders, however, will ignore your portfolio ensuring that you can get the mortgage you applied for.

Given the complexity of the portfolio market we recommend you get in contact but regardless of which lender you approach all lenders will need to know the addresses of your mortgages, the values, the mortgage balances, lenders, monthly payments, rental income and date of purchase.

To discuss your portfolio requirements in more detail please contact us on 020 7486 9976.

Top-slicing

Given the regulation surrounding buy-to-lets, many lenders will now lend more money through what is called top-slicing. This is where the lender will assess your income to support the rental shortfall.

This is done by taking into account your net monthly income and then deducting your personal commitments such as your personal mortgage, any loans, credit cards, etc. Then provided the surplus income is sufficient to cover the shortfall then you may be able to obtain a higher loan amount.

There are a few of the mainstream lenders offering this option which means you won’t necessarily be paying a higher rate.

In order to find out more, please contact us on 020 7486 9976.

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Address

Mandalay Financial
53 Paddington Street
Marylebone
London W1U 4HT

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Monday - Friday: 9:00am - 5:00pm

Telephone

+44(0)20 7486 9976