Mortgages
365 Invest offers a comprehensive end-to-end solution for its clients with nothing missed. If you require a mortgage to purchase your buy-to-let investment property then we can help. We work alongside a team of specialists to ensure you get the best deal possible.
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An Introduction To
Buy-To-Let Mortgages
If you are purchasing a buy-to-let investment property and require a mortgage to do so then you will need a specialist buy-to-let-mortgage. Standard residential mortgages do not allow you to rent out and make a profit from your property. Similarly, buy-to-let mortgages do not allow you to live in the property yourself. It is therefore important you are clear what your intentions are before applying for a mortgage.
Buy-to-let mortgages generally require a higher deposit of 25% compared to standard mortgages and usually have higher interest rates. However, with most buy-to-let mortgages being interest only, repayments are usually more affordable.
In terms of how much you can borrow, this will again differ between lenders. As an idea, most will require that the rental income cover 125 -145% of the cost of your monthly mortgage payments.
Buy-to-Let Mortgage Lending Criteria
In addition to requiring a higher deposit, buy-to-let mortgages will have different lending criteria than standard residential mortgages.
Lending criteria for buy-to-let mortgages will of course differ depending on the lender. However, most will expect the applicant to:
- Already be a homeowner.
- Have a high credit score.
- Be in a position to pay off the mortgage by the age of 70-75.
- Have an annual salary of over £25,000.
- Have prior landlord experience in some cases.
These criteria are a guide and as stated above, they will differ from lender to lender. A buy-to-let mortgage professional will be able to discuss your personal circumstances with you in order to recommend the best lender. If you don’t for example have prior landlord experience then they will know which lenders to avoid and so on.
Applying for a Mortgage
The first step in the mortgage application process is ‘pre-qualification. This is essentially a series of checks carried out before applying for a mortgage, to allow lenders to assess your suitability for the loan.
These checks will include an assessment of your credit and debt history, current income and assets. It is important to note that this information is often self-reported, meaning any inaccuracies in your reporting may lead to false qualification.
The next step is ‘pre-approval’. Whilst pre-qualification is carried out via self-reporting, pre-approval requires evidence of your current situation, including debts, credit, income and assets. Once the evidence is reviewed, you will receive a pre-approval letter which can be used to show property sellers you are in a position to purchase a home.
It’s important to remember when carrying out pre-qualification that if you are unable to provide evidence for the information you have reported, you may be unable to achieve pre-approval.
How 365 Invest Can Help
365 Invest offers a comprehensive end-to-end solution for its clients. We work alongside a team of specialist mortgage professionals to ensure our clients get the best deal possible. Not any one mortgage fits all and there are numerous factors which will determine which mortgage is best for you. Our specialist mortgage team will discuss your personal circumstances with you to source you the best and most profitable buy-to-let mortgage they can.
If you would like more information about buy-to-let mortgages then use the contact us button below. We will be happy to answer any questions you have and introduce you to our team of mortgage specialists. We look forward to hearing from you.
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