Providers of Buy-to-Let mortgages may require a higher deposit. Lenders will usually only approve a Buy-to-Let mortgage if the rental income is at least 130% of the mortgage payments. At Wonderlease we usually have many clients contacting the office for advice. We usually point our clients in the direction of independent mortgage brokers and advise them to ensure that they are able to scan the whole market so that they can identify special deals.

We have put together a checklist when applying for a Buy-to-Let mortgage:

 

Rental income is likely to be __________

Other income (which could affect the amount you are able to borrow __________ Debts __________

Deposit __________

Long/Short term investment __________

I can afford to borrow __________

I want to borrow __________

Mortgage and interest rate __________

How repayments should be made __________

Whether lump sum payments __________

Redemption penalties __________

Is Buy-to-Let insurance included? __________

Other charges __________

Procedure if unable to make repayments __________

Tax implications __________

Am I able to refinance? __________

I have read the terms and conditions __________

Checklist customised from Direct Line Knowledge Centre.

17% of new mortgage applications are from ‘accidental landlords’ who have decided to rent their property due to unforeseen circumstances. The sector is becoming more and more expensive because of the tax changes. Consequently some landlords may struggle to meet the new affordability tests.

If you are a landlord and would to learn more about the Buy-to-Let sector. Please feel free to contact the team.

 

Wonderlease

 

It's the lease we can do

 

Ask for Marc or Richard: 0208 509 3000

 

1 Station Approach, Hoe Street, Walthamstow, London E17 9QF

 

info@wonderlease.co.uk

Published on 04 May 2016

Source Wonderlease

Written by Marc Cohen

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