Buy to let Mortgages in Coventry, Kenilworth, Warwick, Leamington, Stratford-upon-Avon and the rest of Warwickshire

What is a buy to let mortgage?

If you are looking to buy or remortgage a property in our lovely district, for the sole purpose of renting it out, chances are you will need a buy to let mortgage.

Affordability is often calculated very differently for a buy to let mortgage and the available mortgage products are quite different from those offered with residential mortgages. A good mortgage broker is paramount to help you navigate the complexities of the buy to let mortgage world. We at The Mortgage Mum Warwickshire, are local buy to let mortgage experts, and can help everyone from aspiring landlords who are looking to purchase their first ever property to experienced landlords with large portfolios.

Not all Buy to Let Mortgages are regulated by The Financial Conduct Authority.

How is affordability calculated?

If you are looking to buy or remortgage a buy to let mortgage in Coventry, Warwick, Leamington, Kenilworth or Stratford-upon-Avon, or the rest of Warwickshire, you will need to have an idea of what the rental income of the property you are looking to purchase will be. Most buy to let mortgages calculate your affordability based on the rental income you will receive from the property rather than the income you earn from your employment or self-employment.

The rental income estimation is essentially the amount of rent you believe you will be able to charge a tenant for the property, the estate agent can usually give you a good idea, or you can look online at other properties in the local area.
If the rental income falls a bit short for affordability and doesn’t pass the ‘stress test of 125/145% of the mortgage payment stressed at a higher interest rate than your mortgage product, there are options. This is where having an experienced advisor with access to many mortgage lenders can be the difference between being able to buy the investment or not. Some lenders will allow you to add your earned income into the affordability calculation, potentially allowing you to borrow more than the rental income would allow alone.

Repayment methods

The majority of buy to let mortgages are set up on an interest only basis, although some landlords do opt for capital and interest mortgages. We will discuss your options with you and recommend a repayment method that best suits you and your own personal goals.

Limited company buy to let Mortgages Leamington, Coventry, Warwick, Kenilworth, Stratford-upon-Avon, and the rest of Warwickshire

For some landlords, there are certain tax benefits that can be gained, by purchasing a property through a limited company rather in your personal name. Our experienced team can discuss the differences with you in terms of mortgage products available, although we would always recommend you seek advice from a tax adviser.

What deposit will I need to buy a buy to let in Coventry, Kenilworth, Warwick, Leamington, Stratford-upon-Avon, and the rest of Warwickshire?

The minimum deposit for a buy to let is 20%, although there are very few lenders who offer 80% loan to value mortgage products, so the interest rates are typically a lot higher.
The majority of landlords will need to aim for a deposit of at least 25% of the property value, although in some cases a higher deposit may be required.

What buy to let mortgage circumstances can we help at The Mortgage Mum Warwickshire?

Almost all but get in touch if you fit any of the below.

  • A first-time landlord
  • A landlord looking to expand your property portfolio
  • An existing landlord with a buy-to-let mortgage that is up for review
  • A landlord looking to re-mortgage for a better deal
  • Someone who is interested in converting your existing mortgage to a buy-to-let mortgage
  • Someone planning on refurbing your existing house to let it out
  • Someone planning to raising capital from your buy to let property
  • Someone wanting a buy to let mortgage but don’t know if your changed circumstances will affect your mortgage application
  • Someone who is concerned that your previous financial or credit history will have an impact on a buy to let mortgage application