Buy to let mortgages
Charleston Financial Services has more than 25 years’ combined experience providing advice on buy to let mortgages and loans. With access to all major sector lenders, we are able to negotiate some of the very best deals for our clients.
You can view a selection of our best products and cheap buy to let deals here, or read on for more information about our buy to let mortgage service.
Whether you are looking to secure your first investment property, seeking to increase your portfolio or intending to refinance for a low buy to let mortgage deal, Charleston Financial is best placed to assess your circumstances and advise you on the best products available.
In addition, Charleston Financial can also make suggestions about the best landlord insurance options for your situation.
What is buy to let?
A buy to let mortgage is a type of loan for property investors; it differs from a residential mortgage because it is taken out with the intention of renting out to a tenant. A mortgage of this type can be taken out on a single property or across an entire portfolio.
Those who want to let out their former family home are required to take out a buy to let mortgage, as it is otherwise a breach of a residential mortgage loan agreement – and might also find their insurance is void too.
Since the mid-nineties there has been rapid growth in the property market, leading to an increase in demand for buy to let property. Buy to let remains popular and has a strong market – mortgages suitable for first time buyers, for example, are becoming harder to come by, meaning people are renting properties for longer.
In addition, with the base interest rate at such a historically low level, buy to let mortgage rates have never been more competitive. Generally, the interest rate and maximum loan size available for buy to let lending will be determined by the anticipated rental yield on the property, which in turn is dependent on its location.
Most buy to let lenders will be looking at rental coverage of 125% of the mortgage payment to cover the mortgage payment, maintenance costs and insurance. For example, if a mortgage payment is £500, the rental will need to be £625.