These criteria vary throughout the market, and other lenders will demand a rental income of 145% and higher, than your monthly payments. Deciding how much to borrow through a buy-to-let mortgageĭepending on their criteria, most lenders will consider applications where the anticipated rental income is at 125% of the expected mortgage repayments per month. As such, you will find that the fees and interest rates payable are usually higher, and typically lenders will demand a minimum 20% deposit. Longer-term mortgages cost less per month but tend to be ultimately more expensive, particularly when the fixed-term period ends and the lenders' standard variable rate kicks in.īuy-to-let mortgages are generally higher risk than lending against residential properties. When you purchase a rental property, your loan-to-value ratio is essential - this is the proportion of the total property value that your mortgage is financing.Īnother crucial factor is the term of the loan - the lower the LTV ratio and the shorter the deal on offer, the cheaper the mortgage. Calculating the cost of a HMO buy-to-let mortgage The calculator is simple to use and has the flexibility to amend the factors to see how each option compares. As a landlord looking to expand your portfolio, or a new property investor wanting to understand the costs, our buy to let mortgage calculator is a handy tool to help you evaluate which products in the mortgage market are the most competitive.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |