At Carrera Finance we provide a broad range of Buy To Let, HMO and Portfolio Finance. The UK market is thriving. With house prices increasing, more and more people are forced to live in rental accommodation than ever before. Combine that with the fact the UK will reach 70 million within the next 10 years, the demand for rental accommodation only looks set to increase.
Buy to Let Mortgages allow the borrower a first charge loan using an investment residential property as security. The mortgage is set-up so that the property is tenanted out and the mortgage payments are covered by the rent generated by the tenant within the security.
A HMO Mortgage is a conventional buy to let mortgage taken over a security that has multiple tenants. It is referred to as a House of Multiple Occupancy i.e. shared bathing and kitchen facilities.
A Holiday Let mortgage is a conventional buy to let mortgage on a security that has long-term tenancy restrictions.
A portfolio mortgage straddles the border between buy to let lending and commercial mortgages as a loan over multiple properties. In a buy to let form this will take individual loan charges against each property whereas in commercial form a single loan facility can stretch over multiple properties. The former tends to be interest only, the latter amortizing.
The two main forms of buy to let products are:
- Interest only products
- Capital and interest repayment products
A mortgage provider will lend to a set percentage of the purchase price of the property and this is generally at the top end (Loan to Value) of alternate forms of finance. 2020 has seen some volatility in the market but LTV’s available are 75-80%.
As a long-term product the rates often tend to be very competitive and the borrower is provided with a choice of a fixed or variable rate product. A fixed rate product allows the borrower to plan monthly expenditure; a variable rate product holds the advantage of a potentially decreasing monthly payment
To discuss your requirement for Buy to Let finance, contact our expert team for a no obligation discussion.
Call us today to see how we can help or submit an enquiry and we will contact you.