The demand for rental property is still strong across the country.
However, buy to let mortgages can be harder to secure now than in previous years, with lenders requiring larger deposits of around 25% of a rental property’s value in return for a buy to let mortgage (the best deals are available for buyers who have a deposit of 40% or more). Also, recent changes in legislation means that you will be paying a higher rate of stamp duty for an investment property.
When you apply for a buy to let mortgage, the amount a lender will be willing to offer will depend on the property’s rental yield. Therefore, it’s essential that you do your homework and ensure your expectations are realistic before applying for a buy to let mortgage. We can help explain this and help you to work it out.
Also, you can expect to pay a higher interest rate on a buy to let mortgage than you would for a residential mortgage, and your arrangement fees may be higher.
There are plenty of competitive deals on the market, so talk to us to find out which deal is right for you. We also have access to providers who can lend where renovation is required and even where the property isn’t currently habitable.
Mortgages by Prospero is a trading style of Prospero Mortgage Solutions Ltd.
Prospero Mortgage Solutions Ltd is an appointed representative of HL Partnership Limited which is authorised and regulated by the Financial Conduct Authority. Prospero Mortgage Solutions Ltd is registered in Scotland with company number SC586335. Registered Office: 6a High Street, Dunbar, East Lothian, EH42 1EL.
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