Buy-to-let Mortgages

It is very important that you do plenty of research before taking out a buy-to-let mortgage. You need to be confident that your rental income will comfortably cover your mortgage and all your other expenses. Lenders will expect to see evidence that your expected rent will cover your mortgage payments by at least 125%.

A buy-to-let property should be seen as a long-term investment. Over the longer term, house prices are likely to increase but in the short term they could fall or stay the same. No one knows what will happen for certain

Whether you are a first time landlord or an experienced property investor wanting a buy to let purchase or remortgage, Charles Frank Finance can help you every step of the way.

We have arranged hundreds of buy to let mortgages for clients and helped them build up property portfolios providing a decent income for retirement

Purchasing a buy-to-let property can be a stressful time and you may need to move fast, this is where we can help.

When calculating whether buy-to-let is right for you, make sure you include all of the costs involved in letting out a property.

These will vary depending on the property but you should budget for costs of about £270 a year, if you have insurance.

Every few years it is likely you will need to redecorate or refurbish parts of the property. For example putting in new bathroom fixtures. You should budget for these costs accordingly.
If you decide to use a letting agent to find tenants should budget for a fee of around £200. If you would like the letting agent to fully manage the property for you i.e. collect rent, deal with tenants' problems and queries etc. you should budget for between 10% -15% of your annual rent.
There are different levels of landlord insurance. Costs for landlord insurance will vary depending on where you live, the property type and how comprehensive the cover is that you're looking for. We recommend that you take out some kind of landlord insurance and it is likely that your mortgage lender will expect you to.
You should also allow for the property being empty for between 5% and 8% of the year, that is between tenancies or during repairs.
If you want more information or have more questions why not Contact us