1. Cyborg Finance

Buy-to-Let Mortgages Online

Buy-to-Let is fun! Buying your next rental property can be stressful. You don't have to figure it out by yourself. Cyborg Finance will help you find the best mortgage deal, explain the different options and assist you in every stage of your home moving journey.

The rules around landlord finance can be complicated from unusual properties, rental stress tests, limited company buy to let and more so for portfolio landlords. Your circumstances can limit options from minimum income, credit score and experience.

What is a buy-to-let mortgage?

If you intend to buy (or remortgage) a property to rent it out you will need a buy-to-let mortgage. The difference compared to a residential mortgage is consent to rent it out. Also, the loan amount derives from the rent instead of your personal affordability. You may need a specific type of mortgage - HMO Mortgages allow you to rent a single house to multiple tenants. A Limited Company mortgage allows you to buy in the name of a company.

How do I Compare Mortgages?

With public tools, it is very difficult for you to compare mortgages without the assistance of a mortgage advisor. It is difficult to know what you can or can not qualify for. Our mortgage advisers will help you assess the market. Find the best mortgage available. With years of personal experience and our knowledge bank, we can disqualify lenders. This helps prevent false starts. There are many ways to compare the best mortgage for you. Wanting low fees such as low arrangement fees, valuation fees or solicitors fees can be one criteria. Others may be rate driven, looking for the best mortgage rate. Most landlords are looking to "total to pay" over the initial term. Finding the lowest amount of fees, rates, etc all added up to compare the lowest you will pay over the initial term.

Is buy-to-let worth it?

The investment is not unlike any others - you can make good returns or you may make a loss from property downturns, low rental demand or bad tenants to give a few examples. Many investors like buy-to-let as it is a brick & mortar investment, you have a physical asset to show for your investment. One that has the possibility to be resold at a loss, break-even or profit depending on market conditions. An asset that if chosen wisely will give you monthly returns on your investment. It can also be hands-on, you can talk to your tenants and provide a good service. You can invest time to renovate the property. Your efforts can affect the bottom line.

How much could I Borrow?

£
per month

Borrow up to:

£288,000

or £248,276 for House in Multiple Occupation (HMO)

or £248,276 for Higher Rate Taxpayers (HRT)

or £288,000 for Limited Companies (SPV)

* Estimate based on assumptions. Buy-to-Let Criteria changes per lender. Find out more with our Buy-to-Let Maximum Loan Calculator.

Buy-to-Let FAQ's

The trend for buy-to-let mortgages has been to go for Interest Only. With the Government recently removing mortgage interest relief. It can be in your best interest to look at repayment or part-repayment buy to let mortgages. To give you better returns on that investment over the years. Landlords looking to expand their portfolio may prefer interest-only mortgages. Allowing lower payments, to save for further deposits for further properties, giving higher returns. Known as leveraging. Whatever your plan our mortgage advisers can obtain for your repayment, part-repayment, interest-only and offset buy-to-let mortgages.

Yes - Interest Only Mortgages are available for Buy to Let Investment.

An Interest-Only Mortgage is when you pay only the interest amount on the loan only - not repaying any amount from the total loan you borrowed from the mortgage lender.

This means if you borrowed £100,000; at the end of the mortgage term, you will still owe £100,000.

At the end of the term; you can remortgage or sell the property to repay the lender in full.

Interest Only Buy to Let Mortgage Products are widely available from mortgage lenders. This is a considerable difference to residential mortgages in which after an FCA Intervention mortgage lenders removed their products - often only available at a very low LTV or those with high income.

As of writing, you can obtain a Buy to Let Mortgage on an Interest Only basis all the way up to 85% Loan to Value (LTV).

Interest-Only mortgages are the most popular repayment type; as landlords say "Cashflow is king".

Yes - the monthly payments on an Interest Only Buy to Let mortgage is much cheaper compared to a full repayment mortgage.

This can be deceptive as you are not paying anything back that you borrow, only maintaining the interest. It can be "more expensive" as payments of interest are based on the full loan amount rather than a decreasing loan amount on a repayment mortgage. Put simply over time, as more and more of the original loan is paid off, the repayment amount reduces.

In comparison - when you come to sell the property you pay Capital Gains based on the equity in the property

Yes - First Time Buyers can get a Buy to Let Mortgage.

In a post Mortgage Market Review (MMR) world where affordability for residential mortgages are checked more thoroughly, mortgage lenders are under intense pressure by regulators to ensure Buy to Let is not abused as an avenue to finance.

Legitimate First Time Buyers looking to get into buy to let are put under more scrutiny. The question put to mortgage lenders underwriters to establish is why are you not buying a home to live in instead?

The spotlight is on people living with their parents or rented accommodation themselves.

With such a compliance headache many mortgage lenders and brokers alike - have a tendency to have criteria that simply say no with others who want to establish the viability of your proposal.

Those that do abuse Buy to Let may be found to have committed mortgage fraud and in an interconnected world, it is rather easy for a lender to catch the abusers.

You can not ask a mortgage lender if you can live in a Buy to Let property at a later date, this is again due to the increased regulatory burden of residential mortgages - it would therefore require to refinance.

The Financial Conduct Authority (FCA) does not regulate most types of buy-to-let mortgages. There are exceptions known as "consumer buy-to-let". Such products are if you are to rent the property to a close family member. (e.g. spouse, civil partner, child, grandparent, parent or sibling). Regulated Buy-to-Let mortgages have stricter affordability rules similar to a residential mortgage.

Cyborg Finance

  • 90+ Lenders

  • 20,000+ Mortgage Products

  • Cheapest Deals

  • Online Comparison

  • Online Application

  • Automated Efficiency

  • Dedicated Adviser

  • 24/7 Service

  • Works for you

Get in touch

We're an Online Mortgage Broker, you can apply online. Except sometimes you just want to talk to a human. We can do that too..

Phone number
01133 205 902
Email
hello@cyborg.finance

© 2020 Cyborg Finance Limited. All rights Reserved

Think carefully before securing other debts against your home. Your home or property may be repossessed if you do not keep up repayments on your mortgage.

Cyborg Finance Limited is registered in England and Wales (No. 12131863) at 31 Bradford Chamber Business Park, New Lane, Bradford, BD4 8BX
We are authorised and regulated by the Financial Conduct Authority (No. 919921). The FCA does not regulate most Buy to Let mortgages.
Cyborg Finance is a Registered Trademark of Cyborg Finance Limited