As independent mortgage advisers we specialise in all types of BTL mortgage arrangements.
From the experienced Landlord with a large portfolio of BTL properties to an existing homeowner who wants to find out more about becoming a landlord and available BTL mortgage arrangements.
We can even arrange BTL mortgages for applicants with NO earned or self-employed income and also for newly opened or to be created Limited Companies specifically for the purpose of BTL property ownership.
BTL Mortgage Lenders generally assess a BTL mortgage application on your own earned income and the rental income generated by the BTL property when Let to a tenant under a Assured Short Tenancy (AST) or Short Assured tenancy as it is commonly referred to.
Many lenders will only lend to an applicant if they have an income of typically £20,000 or £25,000 on an employed or self-employed earned basis. If you fit into this income category then you will benefit from the choice of the widest range of BTL mortgage lenders and products.
However, we can arrange BTL mortgages for applicants with no earned income so a housewife or house-person with no earned or self-employed income could still obtain a BTL mortgage.
Lenders will also assess the BTL application on the rental income achieved from the property when it is eventually let out after the purchase. The lender will need a rental income assessment from a professionally qualified and registered Chartered Surveyor - so you can buy and arrange a BTL property and mortgage without having a tenant ready.
The rental income calculation qualifying criteria rule that lenders use is typically as follows;
The rental income as assessed by a Chartered Surveyor has to equal at least 125% of the interest only monthly mortgage payment using an interest rate selected by the lender.
Some lenders use an interest rate of 6% and also want this covered at 140% which makes it more difficult to qualify for the mortgage loan amount you need.
The Mortgage marketplace at One Branch can help you identify the most suitable scheme and the most competitive rate that matches your own BTL property and mortgage scenario.Apply now