Mortgage & Finance
Finance is obviously a key consideration when it comes to purchasing property. It is important to know from the outset how much you are looking to borrow, and whether you meet the lenders criteria.
Using a broker
When looking for a mortgage, most people start by going to their current bank or building society and looking at the mortgages they offer. Although this can help you understand a little bit about the criteria you need to meet in order to take out a mortgage, people often end up missing out on other products or pay too much.
At Belvoir, we work closely with one of the UK’s largest mortgage brokers. The Mortgage Advice Bureau has access to over 11,000 different mortgages across a selection of over 90 different lenders. This allows them to find you the best possible rate in the market, and insure the mortgage is right for you and your circumstances.
Buy To Let
If you are looking to rent out your property, it is vital you ensure you are on the correct mortgage. Buy To Let mortgages are very different to standard owner-occupier mortgages and it is important to understand the different in requirements. Speaking to a specialist broker is strongly recommended.
Typically for BTL mortgages, the amount you can borrow is based on the rental income the property is likely to make and then stress tested against higher interest rates to ensure the affordability should rates rise in the future. You often need to be an existing home-owner, and earn a basic salary (usually in the region of £25,000 per year). Also note that properties such as HMO’s and Multi-Lets will need a specific mortgage product to meet the criteria.
Consent To Let
If your rental property is currently on a standard owner-occupier mortgage, there could be serious consequences should the lender find out. In extreme cases the mortgage could even be recalled. Therefore it is really important to be open and honest with your lender as there is always a solution. Some lenders will require you to change mortgage product altogether which could be more expensive.
In some cases however, it might be possible to request ‘consent to let’. This is effectively where the lender allows you to let the property out on the existing mortgage product, however certain restrictions may be placed on you such as a time limitation or a small temporary rate increase or fee.
If you would like to discuss your options, or would like to be put in touch with a finance specialist, please let us know. You can call us; 01202 430108 or send an email to; firstname.lastname@example.org