A buy-to-let mortgage is designed for borrowers who want to invest in the property market and purchase a property to rent out to tenants.
A buy-to-let investment can be viewed as a long-term opportunity for profitable returns and as a way of securing finance for retirement. There are many competitive mortgage deals available that are specifically aimed at those buying to let.
When you take out a buy-to-let mortgage, you will be expected to meet certain criteria:
- you will be required to put down a deposit (typically larger than for a standard residential mortgage) – roughly 25% of the property’s value
- your expected rental income will usually need to exceed your mortgage repayments by a certain percentage – e.g. your lender may require a rental income of 125% of your monthly mortgage payments. However, some lenders are more flexible.
We have experience of working with a range of buy-to-let customers, whether buying their first property or their 50th.
Clients who have more than five buy-to-let properties need advisors who are experienced in placing this type of business. We have personal relationships with a range of lenders that offer clients this type of financing.
Please remember that it is the borrower’s ultimate responsibility to ensure that the mortgage payments are made, whether there is a tenant in the property or not.
We are experienced in let-to-buy mortgages and work with a wealth of clients in need of let-to-buy products. We can advise you on the best mortgage for your circumstances.
Expatriate Buy-to Let mortgages
If you decide to emigrate, but want to retain property in the UK as an investment, you will at some stage have to look at applying for a mortgage in your expatriate status.
We have relationships with lenders that are happy to offer mortgages to expatriates. As a rule, applicants need to own their main residence and have a mortgage track record. First-time landlords will be accepted providing they own their main residence.
Applicants may already have several investment properties and we can negotiate with lenders for more than one property at a time.
Expatriate mortgage applicants may be asked to provide evidence of the following:
- valid passport and certificate of residency
- statement from reputable credit/financial institution showing current home address (certified by a lawyer or bank official in country of residence with branch stamp)
- confirmation of address via our standard employers reference
- a current UK mortgage (not bridging finance)
- a current UK bank account
- income equal to £20,000, not necessarily in sterling (in applicants name).
We are happy to look at mortgages for expatriates located in any country, but the majority of lenders will only accept mortgage applications on investment properties in England and Wales from applicants who are UK Nationals and live in those countries that can be regarded as having “equivalent AML/CTF jurisdiction” status.
Member states of the EU/EEA are subject to the money laundering directive and can therefore be regarded as having equivalent status. In addition, member states participating in the EU Committee on the Prevention of Money Laundering and Terrorist Financing have agreed a list of equivalent third countries.
The combined list of countries having equivalent jurisdiction is as follows:
- Australia, Hong Kong, Norway
- Austria, Hungary, Poland
- Belgium, Iceland, Portugal
- Brazil, India, Romania
- Bulgaria, Ireland, Singapore
- Canada, Italy, Slovakia
- Cyprus, Japan, Slovenia
- Czech Republic
- The Netherlands
- South Africa
- Denmark, Latvia, South Korea
- Estonia, Liechtenstein, Spain
- Finland, Lithuania, Sweden
- France, Luxembourg, Switzerland
- Germany, Malta, United Kingdom
- Gibraltar, Mexico, United States