UK Mortgages, Remortgages, Loans and Finance

Best buy to let mortgages from BuyToLetForYou

UK Property Search Limited does not offer financial advice. However, if you require a mortgage, remortgage or any other property related finance then please contact any of the companies advertising below. Most have financial products for the purchase of residential property, new build property and investment property alike.

A brief glossary of terms

The following explanations of some common property finance terms are provided as a general overview only and should not be taken as legal definitions of the term. All information below correct at time of writing:

Residential Mortgage

A residential mortgage is a loan for the purchase of property and/or land whereby the lender (known as the mortgagee) takes the property and/or land as security until the borrower (known as the mortgagor) has repaid the loan in full. A residential mortgage is a legal agreement on the terms and conditions of the loan. In the UK, residential mortages are regulated by the Financial Services Authority (FSA).

UK mortgages are typically set for a 25 year repayment period based on a retirement age of 65. So beyond the age of 40 you may find that you are required to repay the mortgage over a shorter period of time. Due to the high price of UK property and the problems this brings for first time buyers there are now some mortgage products offering longer repayment periods.

Best buy to let mortgages from BuyToLetForYou

The amount of money you can borrow is linked to your earnings - the mortgage company use these calculations to (the best of their ability) determine a comfortable monthly repayment that allows for your other financial outgoings. Recently we have seen this stretch, again to allow first time buyers to get a foothold on the property ladder.

Buy to let Mortgage

Buy-to-let mortgages have become increasingly popular in the UK with many people seeing property investment as an alternative to traditional pnsion schemes. A buy-to-let (BTL) mortgage allows you to borrow money for the purchase of a second (or more) property whilst keeping a mortgage on your own home. As the name suggests it is provided with a view to renting out the property in order to generate the income required to meet the monthly remortgage payments.

Buy-to-let mortgages are typically interest-only loans. This means that the monthly repayments are kept to a minimum but, regardless of how long you keep the property, you will still owe the full amount you borrowed. When you apply for a buy-to-let mortgage the lender will typically calculate the amount you can borrow based on the properties value and the amount of monthly rent it should easily achieve. Your own income doesn't usually come into it as the buy-to-let mortgage needs to be 'self-sufficient' - ie the rent can cover the mortgage. Your mortgage company will ask the surveyor to provide his assessment of the potential montyhly rent. This will typically need to be around 125% - 130% of the monthly mortgage payment. If it is less than this then, if you still wish to proceed, it is likely you will have to pay a larger deposit in order to reduce the mortgage payments.

At the time of writing buy-to-let mortgages are unregulated in the UK with a couple of exceptions relating to the specific circumstances of the loan - please check with your financial advisor.



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