In years gone by, it had been possible to secure a Buy to Let mortgage with a deposit of just 15% but, nowadays, there are very few products available in this range. If you do source a deal with such a low deposit amount, you can expect that your repayment rates to be higher. The newer you are to Buy to Let, the more difficult it can be to secure a Buy to Let mortgage, unless you wield a hefty deposit. Anything above the 25% mark for a deposit will see much better rates and incentives being offered. To give you an idea about how much deposit you may need for certain valued properties, take a look at the table below.
The larger your deposit is the less money you will need to borrow, making you less of a risk to the lender. It also means that your rates will be lower. Despite that, don’t forget that there are still additional costs to consider such as your arrangement fees which can add weight to the overall costings.
Due to the fact that the Buy to Let mortgage market being extremely competitive, lenders are cautious and follow some strict criteria before approving a Buy to Let mortgage.
Most lenders will make an assessment of your personal situation too, before approving a Buy to Let mortgage.
If you’re landlord looking to put together a property portfolio, there may be a set of different criteria to follow before approval.
As an independent mortgage broker, MortgageKey are perfectly poised to help you find the right Buy to Let deal. Here’s why…
On top of the above, we are ready and awaiting your call Monday to Friday from 9am to 8pm. Speak to a courteous and helpful advisor and allow them to assist you in finding a suitable product for your individual requirements. Learn more about how Buy to Let mortgages work, how to make money from Buy to Let mortgages and consider these 12 things before making a decision!
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Representative Example: Annual Interest rate of 2.44% fixed for 2 Years followed by 3.59% for the remaining term. Representative 3.50% APRC Variable. Based on borrowing of 150,000 over 17 years repayments of £899 per month. Total amount repayable £198,466. Includes Lender Fee of £995 and Broker Fee of £695.