Investment Property Loan
Using an investment property loan, commonly known now as a buy
to let mortgage, is one of the best ways to get a double return
from your investment property
You profit
from your rental income which offsets the buy to let mortgage
payment, and the growth in value of the property is all yours
too!
On
a 'normal' residential mortgage the amount that you are able
to borrow will usually depend on two things - your annual
disposable income and the amount that your chosen lender is
prepared to lend in relation to that income.
A
buy to let mortgage is
completely different because it is the investment property
and it's ability to attain rental income that will be used
by the vast majority of lenders, when they are assessing how
much they will lend. The property is the 'kingpin' in buy
to let.
Best
buy to let mortgage
The
best buy to let mortgage can be arranged for you by one of our
associate companies. They will research the market on your behalf
for the best buy to let mortgage rate and deal to match your
circumstances. The link at the top or bottom of this page will
get you a no obligation, free buy to let mortgage quote.
You
can of course go directly to one of the high street lenders
for an investment property loan, the Northern Rock buy to let
mortgage is popular, but we feel our qualified finance experts
can get you a better deal by fine tuning a package to suit your
own situation and of course, you get excellent personal service.
Most lenders will require the monthly rental income to be
at least 125% of the monthly mortgage payment. This is not always the case however, and there are periodically some fantastic deals available.
New build property rates and deals can vary dramatically. Call us - although we are not qualified to advise on financial matters, we can answer basic questions and refer you to an IFA for the intricate stuff. Typical examples of buy to let mortgages with actual new build property can be seen here on our web site
new build investment property
Investment property finance
This
is an example of investment property finance for a typical " 2 up-2down terraced house". Although the example is
of a single property ,the procedure works on multiple properties
too. I have worked this out on the basis of an 80% mortgage,
although there are lenders offering up to 90%.
(Beware of property packaging companies detailing anything
other than these figures, they are probably exaggerating other
aspects of the deal too.Remember the old adage, "if it
sounds too good to be true-it probably is")
Property
purchase price £50000 (Value confirmed by your lenders
surveyor).
Your lenders advance 80% of £50000 = £40000
Your deposit requirement is therefore £10000 .
The expected rental income is £4160 per year.
The property investment finance (mortgage) payments (interest only of course) would be £208.33p
per month
**Assume
rent increases of 4% per year
***Investment property finance fixed rate of 6.25% interest only
If
you have a requirement for a bridging loan (for any purpose),
and you need it fast, give us a call. We will introduce you
to a major lender who will give a very quick decision.
|
Free
buy to let mortgage quote and advice |
|
If
you are buying your first property, or want
to raise cash by financing/re-financing existing
assets to add properties to your existing portfolio,
our experts can give you an immediate decision
in principle.They offer a superb service and
can get the best buy to let mortgage rate for
your situation |
Phone 0191 2582426 or email (click here) |
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* Please note that we are not qualified financial
advisors. If you require property investment finance and are interested in investing
in a property portfolio, we will introduce you to qualified
specialists in the field of your your interest.
