Buy to Let Mortgage Advice Throughout South Yorkshire, North Nottinghamshire and Derbyshire

Buy to Let or Let to Buy - What's the Difference?

If you intend to rent out a property you wish to purchase then you will need a "buy to let" mortgage.

If you intend to rent your current home, in order to purchase another home, you will need a "let to buy" mortgage.

How do Buy to Let Mortgages Work?

For Buy to Let or Let to Buy, the borrowing is secured against the property to be let out and the borrowing amount is generally based on:
The size of deposit that you are providing in the case of a purchase,
or the equity in the property in the case of a re-mortgage.

Your borrowing potential is heavily connected to the amount of rent expected, however some lenders will allow earned income to be used to top it up.

In addition to rental income, there are other factors that can influence a lender's decision. These include:

• The property type - Ex local authority properties and high rise flats are examples of property that lenders may not be willing to lend on
• The type of proposed tenant - Some lenders do not accept students or DSS
• The type of tenancy agreement - Most lenders require a minimum six months assured short hold tenancy
• Whether there are any licensing requirements - Certain properties are subject to Housing of Multiple Occupancy licensing
• The borrowers personal financial circumstances - Most lenders require a minimum level of income
• Employment status - It may be possible to purchase a buy to let as a 'house person'
• Age - Some lenders have minimum and maximum borrower ages
• Mortgage history - It may not be possible to borrow from a number lenders if you do not have a current residential mortgage

Different approaches are taken by the various lenders and the buy to let market is becoming ever increasingly complicated due to the current economic climate.

Let our Buy to Let Knowledge Work for You

At Moorgate Financial Services we have access to specialist lenders and will advise you of the most suitable product for you, which lender to choose and the most efficient way to proceed.

Get in touch with us today to arrange a free consultation or complete the form on the right to request a free call back at a time to suit you.