Nationwide Mortgage Brokers
Becoming a landlord doesn’t have to be complicated. AJL Mortgages offers expert advice on Buy to Let mortgages, making property investment straightforward.
Free 15 Min Discovery Call
Expert Advice
Market Leading Packages
Considering becoming a landlord? Owning a rental property can be a smart investment. Buy to Let mortgages work a bit differently from residential ones. Here’s what you need to know:
Interest-Only Options: Buy to Let mortgages are often interest-only, meaning lower monthly payments and more cash for other expenses.
Higher Upfront Costs: Be ready for a larger initial investment. Buy to Let mortgages typically require a higher deposit (25-40%) and may include additional fees.
Stamp Duty on Second Homes: Purchasing a second property comes with higher stamp duty. Use our easy stamp duty calculator to estimate the amount you’ll need to pay.
How does AJL Mortgages work?
At AJL Mortgages, we simplify the home-buying process with expert guidance, ensuring you receive professional support every step of the way.
As an award-winning broker, we offer free mortgage and protection advice tailored to both first-time buyers and seasoned investors. Trust AJL Mortgages for a smooth, stress-free home-buying experience.
We'll review your current circumstances and property goals, evaluating your borrowing capacity to help identify the most suitable mortgage lenders.
An AIP provides an estimate of your borrowing power. With this in hand, you can confidently explore properties within your budget and make informed offers.
After your offer is accepted, we recommend the most suitable lenders and mortgage products. We manage every detail of your mortgage application to ensure a seamless experience.
Book A Free 15 Min Call to Review Your Options
Let’s break down Loan to Value (LTV). It’s simpler than it sounds. LTV is the percentage that represents the ratio between the amount you borrow and the deposit you put down.
Why LTV Matters: A lower LTV means you're seen as less risky by lenders, which could lead to better mortgage deals, like lower interest rates.
LTV and Your Deposit: The larger your deposit, the lower your LTV. It’s like a seesaw – the bigger the deposit on one side, the lower the LTV on the other. For example, with a 40% deposit, your LTV would be 60%, giving you access to more mortgage options.
LTV Limits: Lenders set their own maximum LTV. For Buy to Let mortgages, this is typically around 75%. So, if a property is valued at £200,000, you could borrow up to £150,000 with a 75% LTV, meaning a £50,000 deposit is required.
Your LTV can impact the types of properties you can afford. A lower LTV generally means more equity in the property, providing a cushion against market changes.
FAQ: Buy to Let Mortgages
Get to grips with the costs of buy to let mortgages:
Annual Percentage Rate of Charge (APRC):
This represents the total cost of your mortgage as a percentage, assuming you keep it for the full term. It’s a crucial figure to help you compare different mortgage deals effectively.
Mortgage Rates and Arrangement Fees:
Buy to let mortgages generally have higher rates and arrangement fees compared to residential mortgages.
Stamp Duty Fees:
Buy to let properties are subject to an additional 3% stamp duty compared to residential properties.
Conveyancing and Surveyor Costs:
These are standard costs in the property buying process and should be included in your budget.
Recent Tax Changes for Landlords:
Stay informed about the latest tax changes affecting buy to let landlords, as recent updates may impact your investment.
Repayment Strategy for Interest-Only Mortgages:
Most buy to let mortgages are interest-only, so you’ll need a plan to pay off the capital. Consider your remaining debt if you plan to sell the property in the future.
Reviews
We wouldn’t be where we are without our incredible clients. We take pride in building genuine, one-on-one relationships, offering tailored mortgage advice that suits each individual’s needs.
Brilliant service, kept us up to date throughout the whole process, As a first time buyer this was stressful for me and my partner and Alex made sure we understood the process every step of the way. Will 100% use AJL when needed next.
Brilliant service, kept us up to date throughout the whole process, As a first time buyer this was stressful for me and my partner and Alex made sure we understood the process every step of the way. Will 100% use AJL when needed next.
Brilliant service, kept us up to date throughout the whole process, As a first time buyer this was stressful for me and my partner and Alex made sure we understood the process every step of the way. Will 100% use AJL when needed next.
