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Buy-to-Let Mortgages
A buy-to-let mortgage is a loan which is secured against a property that will be let by the buyer as a landlord. Criteria will vary from lender to lender depending on many factors, such as the rent received on the property, the clients income and the number of properties owned by the client. Property can also be owned by a limited company specifically set up for this purpose. It would be advisable to take professional tax advice when purchasing property for buy-to-let purposes.
Buy-to-let mortgages are drafted on a loan-to-value amount (LTV) usually agreed with the lender. Although typically lenders require a rental income of anything between 25-30% higher than a mortgage payment. This will directly impact on the deposit percentage you will need to make, which will be based on the final LTV amount.
Most buy to let mortgages are not regulated by the Financial Conduct Authority.
Buy-to-let mortgages can either be paid on a capital and repayment basis, or interest only, means that throughout the mortgage term, repayments will cover the cost of capital and interest, or leaving the overall balance of the mortgage outstanding at the end of the term. In the event of opting for an interest only mortgage, a repayment strategy will be required. This may be as simple as selling the property.
Your property may be repossessed if you do not keep up repayments on your mortgage.
This firm usually charges a fee for mortgage advice. The amount of the fee will depend upon your circumstances and will be discussed and agreed with you at the earliest opportunity.
What are our Fees and Charges?
Insurance
We will not charge you a fee for our services relating to insurance, but we will receive commission from the product provider. The commission will be calculated as a proportion of the premiums paid for the insurance product.
You will receive a quotation which will tell you about the fees and charges relating to any insurance policy that we recommend.
Mortgages
For our advice services we will charge no fee
We will be paid a procuration fee by the lender. The amount of the procuration fee will be disclosed to you.
You have the right to ask us to provide information on the range of procuration fees that the lenders on our panels offer to us.
If an application is submitted to a lender via a packager (a 3rd party specialist) we will be paid commission by the packager. This will be disclosed to you.
Why choose Aston & Co Financial Services for your Buy to let mortgages?
At Aston & Co Financial Services Ltd we have the experience and the know-how to help you find the best buy-to-let mortgage deal to suit you and your budget. Our friendly and professional advisors are on hand to guide and support you in your choices. Contact us today to discuss your needs and pave the way to your happy-ever-after.
