About Us
"Well I know a lot about buy to let mortgages ..." I said which resulted in me landing a job as an administrator to a mortgage broker back in 2004! I qualified as a mortgage broker after learning the ropes as an administrator and have always tended to specialise in the buy to let mortgage market. I had been growing my property portfolio since 2002 and had already arranged 6 buy to let mortgages on my properties in Newcastle, off plan apartments in Manchester and Birmingham and was just looking to finance HMOs (Houses of Multiple Occupancy) in Milton Keynes. I did not know how a broker placed a buy to let mortgage, but I knew the jargon and what a landlord was looking for. You see unlike a mortgage you may want on the property you live in yourself, a buy to let mortgage is only for properties which you intend to let out to tenants, tenants who will be paying you rent. As such the lender does not just need to know property value, mortgage amount and your income, but also most critically what is the expected rental income. I say critically because the amount of rent you are paid each month from your tenant will need to be more than your monthly mortgage payment amount. And depending upon the lender could be as much as 130% more than your mortgage payment. For example if your mortgage payment is £1000 then your rent would need to be £1300. Comparatively speaking buy to let mortgages is a recent phenomena and in part is responsible for the property boom and the boom in landlords over the last 10 years. Before then rental property loans were commercially based loans. Buy-to-let mortgages have been a great way of turning bricks and mortar into a hard working investment. With my background as an experienced landlord and knowledge as a whole of market mortgage broker (I qualified in 2006 and set up my own business in 2007) I was able to help a lot of people become property investors and I am still doing this even in this economic climate. Up until 2007, you were able to obtain buy to let mortgages with just a 5-10% deposits. The
credit crunch saw the buy to let market shrink with the disappearance of Northern Rock and Mortgage
Express (Bradford and Bingley) Another change has been the amount of deposit you will need to put into the deal which can be anything between 25-30%. The headlines of 2010 is that the buy to let market is seeing a recovery and that lenders are also seeing the potential in this sector. Buy-to-let mortgages are quite specialised, doing it by yourself can take a lot of your time sourcing the products, making products match your requirements and yet still not get your mortgage application approved. If you are interested in becoming a property landlord or expanding your portfolio then there are deals out there for you. You just need to know what business lenders are looking for. Despite the media reporting that lenders are in favour of experienced Landlords there are still buy to let mortgages for both newcomers to the Buy-to-Let market and experienced landlords who may be looking to add to their portfolio. I am passionate about the UK buy to let market always have been ever since making money on houses since late 80s. Now I share my knowledge and experience of lenders, property and tenants to help experienced and new landlords build up the property portfolio of their dreams. |
