Buy To Let Mortgages

Buying a property and letting it out is extremely popular but with recent tax changes and EPC requirements it has made the idea a little more complex. Whether you are a first time buyer/first time landlord or a landlord with a portfolio of properties, we would love to chat and see how we can help.

Understanding Buy-to-Let

What is Buy-to-Let?

Buy-to-let involves purchasing a property with the intention of letting it out to tenants to generate rental income. However, the type of tenant is important, as the lender will need to know the type of tenant you plan to let the property to, such as corporate let, student let, Airbnb, HMOs (houses in multiple occupation), professionals, holiday let etc

Pros and Cons

While buy to let can be financially rewarding, it can also be costly and there are rules that need to be followed to allow you to let the property out. Understanding the pros and cons beforehand is important and our team can talk you through these. Even the basic type of buy to let mortgage needs to be considered, i.e. do you have a personal buy to let or a Ltd Co Buy to Let.

Whether you’re an existing landlord or you are looking to buy your first investment property, it helps to have an experienced team help you on your landlord journey. There is a wide variety of things to consider when you’re thinking about a buy-to-let Mortgage, such as:

The rental yield

The type of tenant that the property will attract

Where the property is located

If you will be managing the property yourself

In addition to these, there are also the legal requirements that you will need to meet, such as obtaining Gas Safety certificates, having a valid EPC and landlord’s insurance. We know that buy-to-let mortgages aren’t always easy and that is why we are here.

Disclaimer: The Financial Conduct Authority does not regulate some forms of Buy to Lets.

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Disclaimer: The Financial Conduct Authority does not regulate some forms of Buy to Lets.

How Can Our Mortgage Advice Services Help You?

At SJ Financial Solutions, we have a team of experienced advisors who have a wealth of knowledge in buy-to-let mortgages. We have dealt with clients who are buying their first buy-to-let property using savings and inheritance to clients whose occupation is a professional landlord.

Our mortgage advisors can help you search through a variety of mortgage deals to find the most suitable product that suits your financial circumstances and your needs.

If you would like to discuss your options or if you would just like to know what may be possible, then don’t hesitate to contact us.

Portfolio Landlords

You may be in a position where you own multiple rental properties and should you own 4 or more, you are classed as a portfolio landlord. Tougher rules and regulations for portfolio landlords are in place and lenders will require more information from you. We will discuss this with you and help with the paperwork.

If you are looking to review your portfolio or just want to chat through what the changes may mean for you, please don’t hesitate to get in touch with our mortgage advisors.

Airbnb

The mortgage industry has caught up with the booming short-term holiday market and is now offering mortgages specifically for those wanting to boost their income by renting out a part or all of their property.

If you are looking to become an Airbnb host, we can help you navigate the market and find one of the growing number of lenders on the market offering these mortgage deals.

Disclaimer: The Financial Conduct Authority does not regulate some forms of Buy to Lets.

Frequently Asked Questions

How much deposit do I need for a buy-to-let mortgage?

Deposit requirements for buy-to-let mortgages vary depending on lenders and individual circumstances. Typically, lenders may require a deposit of 25% or more of the property's purchase price.

What are the tax implications of rental income?

Rental income is subject to income tax, and landlords are required to report it on their tax returns. Additionally, landlords may be eligible for various tax deductions, such as mortgage interest and property maintenance expenses. Please note we are not accountants or tax advisors and would strongly recommend that seek advice prior to buying a buy to let or even increasing your portfolio.

What are the common pitfalls of buy-to-let investing?

Common pitfalls of buy-to-let investing include underestimating running costs, encountering problematic tenants, and failing to conduct thorough market research. It's essential to approach buy-to-let investing with careful planning and diligence.

Is buy-to-let a good investment in today's market?

The viability of buy-to-let investing depends on various factors, including market conditions, location, and individual financial goals. While buy-to-let can offer attractive returns, investors should conduct thorough due diligence and seek professional advice before making investment decisions.

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The Financial Conduct Authority does not regulate some forms of Buy to Lets. Your property may be repossessed if you do not keep up repayments on your mortgage.