Best Buy to Let Mortgage 

Best buy to let mortgages
When most people think of the best mortgage deal they are usually relating to the lowest interest rate or the lowest mortgage payment they will have to pay.
However, from my experience both as a broker and as a buy to let mortgage investor the majority of investors do not meet the criteria for the lowest rate on the market is not for several reasons such as deposit, rent, affordability etc.

For example, lenders may promote a 2.99% interest rate for a buy to let this seems fantastic until you here that is only for one year before increasing to the lenders standard variable, has an arrangement fee 3.75% of the loan and requires you to put down a 40% deposit. Now it may not seem quite as attractive!

The number of times I have been asked what the best buy to let interest rate is at the moment. It is just like asking how long is a piece of string.

So really the question you want to be asking is what is the best buy to let mortgage deal for me? And the way to find that out is by assessing all the facts about you and the property you wish to invest in.

Here are a few questions you will need to consider before you can be given a mortgage product.

What your age is?
Some lenders have a maximum and minimum age criteria

What is your income?
Some lenders require a minimum of £25,000 proven income. Now remember this is the total income between all the names on the mortgage.
This can be a stumbling block for some investors who have been building property portfolios over the passed few years and not making high or any net profit. You therefore must apply to a lender who is not requiring proof of income and there are still one or 2 around

What is the rent on the property?
Your rent must be at least 25% more than you mortgage payment to be acceptable to a lender. So by working this out you can estimate what your monthly mortgage payment must be and then find how much you can borrow against this monthly payment.

For example if your rent is £500 then you mortgage payment must be no more than £400 per month. Working on an interest rate of 5 % that would mean you would be able to borrow about £95,000.

What deposit do you have available?
Most lenders for buy to let are looking at between 25-40% deposits. The more deposit you put in the lower the interest rate.

How old are you?
Minimum age is from 21 years and maximum can be 70, 75 or no age limit depending upon the lender.

Your credit score
Again the best buy to let mortgage rates are for those with high credit score.

What is the property type?
If you are looking at buying a new build flat, flat above commercial premises or an ex council property then not all lenders will accept these types of properties.

Argument for fixed or tracker?
Do you like the certainty to budget knowing what your mortgage is or are you happy to risk interest fluctuations? Tracker rates predominantly are lower then fixed but the risk is they can increase over the product term as they track the bank of England Base Rate.

As you can see there are several things an individual would need to consider when looking for the best buy to let mortgage out there. As the best buy to let mortgages are not generally from high street lenders most investors work with an experienced, buy to let, whole of market broker. The broker would then have access to sourcing software with all the necessary filters for the above criteria to give you the best buy to let mortgage deal relevant to your own personal circumstances.