Purchasing and renting out investment properties could prove to be a sufficient income flow, avoid the worry around mortgages by coming to Double Quick Mortgages Ltd. Based and working in Haddington, East Lothian, we utilise an expert team that helps landlords by recommending the best solution for you to take. We offer buy-to-let mortgages from both ourselves and other lenders, ensuring you get the best deal.
When dealing with regular domestic home loans, various options are available including fixed and variable-rate loans.
With buy-to-let mortgages, some lenders only consider your rental income, whereas other lenders place emphasis on your normal earnings when you have 1 or 2 properties in your rental portfolio.
To qualify, your expected rental income must exceed your mortgage repayments by a certain percentage. Your mortgage lender may require a rental income of between 100% and 130% with the most common percentage being 125% at this time.
Your lender will also want to establish whether the property you are buying is a good long-term investment and buy-to-let mortgages are subject to the usual status checks. Generally, buy-to-let mortgages are available for between 5 and 45 years and for up to 80% of the property value.
When considering a buy-to-let mortgage, it’s necessary to think about additional costs such as letting agent's commission, insurance premiums for building and contents cover, and rental and legal expenses.
You should also consider the costs of keeping the property in a suitable condition for letting, service charges, and ground rents when the property is leasehold.
Additionally, not all forms of mortgage are regulated by the Financial Conduct Authority.