Buy to let mortgages
- Lowest Rates Available
- Lowest Set Up Costs
- Highest Loan to Values
- No Minimum Income Requirements
- Flexible Lending Criteria
- Property Portfolios
- HMOs – Houses of Multiple Occupancy
- Facilities for Limited Companies
- Application to Completion Within Just 14 Days
We take the time to fully understand your requirements before quickly arranging hassle free market leading finance facilities.
Fast buy to let mortgage service
Our fast specialist plans enable completion of buy to let mortgages and remortgages within just 2 weeks of application. Market leading rates combined with a quick and extremely easy application process make these buy to let mortgages a perfect option:
- For buying investment property at auction
- For urgent remortgages
- When quick completion is required
Buy to let remortgages
Investment properties can be remortgaged to:
- Replace existing finance facilities for a cheaper alternative
- Raise funds by releasing equity from the property
Let to buy mortgages
The simplest way to explain what a let to buy mortgage is, is that they are a buy to let mortgage that has been used to remortgage your existing home so that you can rent it out once you have moved elsewhere.
Reasons for taking out a let to buy mortgage
Choosing to do a let to buy can be an excellent way to start a property portfolio. When moving house, instead of selling your existing property, you could take the opportunity to become a landlord using a property that you know well. This has the added advantage that when buying a new home you are not in a sale chain and can move at a fast or slow pace to suit yourself. If you later decide that being a landlord isn't for you, then sell the property and repay your buy to let mortgage. Starting a property portfolio this way is so much easier because you already have the property to be rented and therefore don't have to buy one, which will save on solicitor's costs and stamp duty if applicable.
Let to buy mortgages are popular with people who love their home and despite moving would rather maintain their ownership of the property. Ownership of the property can be kept and replacement funds raised in place of selling, by way of a buy to let mortgage. Once rented out the rental income can be used to pay the monthly buy to let mortgage repayments and hopefully also leave a profit. By taking advantage of a let to buy mortgage in this way you will be able to benefit from any future increase in the value of the property and also from the rental income.
For people who have to move away to a different part of the country, or even abroad, for a period of time and do not want to sell their existing home because they want to move back into it on their return, a let to buy mortgage can be a great option. The home can be rented whilst away to provide an additional income, and if funds need to be released from the property in order to purchase a home in the new location, this can be achieved by taking out a buy to let mortgage.
Why are buy to let mortgages popular?
Buy to let mortgages are popular because they provide the funds that enable people to buy investment property.
Investment properties are popular because generally property prices increase. Although property prices from time to time decrease, they generally increase. The average house price in the United Kingdom has increased a huge 105% during the 10 years from 1999 to 2009. This also illustrates how buy to let property is often best as a long term investment!
In addition to property being a good investment, buy to let properties have the additional benefit of providing a rental income each month which can be used to pay any buy to let mortgage that maybe secured on the property. An added advantage is that similar to property prices, rental incomes can also increase.
Over the years buy to let mortgages have considerably increased in popularity
Before the 1988 Housing Act tenants had a lot more rights, most importantly they had security of tenure which made it very difficult for landlords to evict their tenants. The 1988 Housing Act meant an end to security of tenure and this made owning property to rent it out a much more attractive proposition.
During the 1980s there was an economic boom which led to more people buying property and less people therefore requiring rental property. However from 1989 to 1994 there was a recession and this caused a huge decline in the property market and a large increase in properties being repossesses. This therefore caused a large increase in the demand for rental properties and combined with the 1988 Housing Act, more people were encouraged into becoming landlords. Funding was obviously required to purchase investment property and this caused a large increase in the demand for buy to let mortgages.
The Association of Residential Letting Agents during the mid 1990s pushed for changes to be made to buy to let mortgages. At this time buy to let mortgages were offered at the more expensive commercial mortgage rates and affordability was calculated without taking into consideration the rental income that the property could generate. The Association of Residential Letting Agents wanted buy to let mortgage interest rates to be cheaper than commercial mortgage interest rates, pushing for them to be more in line with residential mortgage interest rates. They also pushed for the potential rental income to be taken into consideration when calculating affordability.
In 1995 the Association of Residential Letting Agents managed to gain a panel of 6 lenders who were happy to lend at reduced rates and who also took rental income in consideration when calculating affordability. Since then more and more lenders have introduced buy to let mortgage products, although since the credit crunch many lenders have withdrawn from the buy to let mortgage market.
Considerations when looking for an investment property
If looking for a buy to let property and you are intending to finance the purchase with a buy to let mortgage, then it is important to choose a property that will be desirable to people looking to rent. It is also important to put aside your own ideas about what you like in a property and consider what most potential tenants are looking for.
In order to get a competitive rate most buy to let mortgage providers will lend up to 75% of the value of the property. Facilities are available for loan to values to 85%, but these buy to let mortgage facilities are very limited and are more costly.
To avoid retention conditions being imposed on your buy to let mortgage offer, it is important to choose a property that is in a good state of repair and is complete with at least one kitchen and one bathroom.
Advantages and disadvantages of fixed rate buy to let mortgages
A fixed rate buy to let mortgage has fixed monthly repayments for a set period of time. A fixed rate enables a landlord to know exactly how much their monthly repayments will be on their buy to let mortgage during the fixed rate period. By opting to take out a fixed rate buy to let mortgage facility the landlord is protected from interest rate rises during the fixed rate period.
Interest rates can go up or down, so reduction in interest rates on a buy to let mortgage will not be passed onto the landlord. Fortunately with interest rates at a low of 0.5% this is hardly a concern at the moment, except if fixed rates are taken out under the assumption that rates will go up considerably and it turns out that they don't.
Fixed rate buy to let mortgage deals usually have an early redemption charge during the fixed rate period and sometimes the redemption period can extend for some time after the fixed rate has ended. Therefore should some great buy to let mortgage deals become available it may be expensive to remortgage the existing buy to let mortgage facility for a new one that is a much better deal.
Are you looking for buy let mortgages? Here at KIS Commercial Finance we are reputable buy to let mortgage brokers who can provide you with some of the most competitive commercial mortgages and buy to let mortgage rates on the market.
We are independent buy to let mortgage brokers and offer a variety of buy to let mortgage deals which range in payment terms from one year to forty years, and many people find that they can qualify for let to buy mortgages even with a poor credit history, CCJs, defaults or arrears against your name.
When you come to us for buy to let mortgage deals, you will receive some of the lowest buy to let mortgage rates available on the market, and also the lowest set up costs. As we have a flexible lending criteria, there are no minimum income requirements when applying for one of our buy to let mortgage deals. As responsible buy to let mortgage brokers, we will dedicate time to your individual application before we arrange hassle free finance facilities.
As well as the best buy to let mortgage rates, we can also offer quick and easy buy let mortgages which can be processed and completed within two weeks of your application. Therefore, buy to let mortgages are ideal for investing in auction properties, for urgent remortgaging or any other occasion when you require a quick buy let mortgage and completion. When applying for buy to let mortgages from us here at KIS Commercial Finance, we aim to complete all buy let mortgages within just 14 days of application.
By arranging your buy let mortgages from us here at KIS Commercial Finance, you can receive the funding you require to invest in a property or further properties. Let to buy mortgages can often be the best options for a long term investment of your existing property as property prices tend to increase as time goes by. The amount of rent achievable is also likely to increase, so as the years go by, you can also receive a higher rent rate which can help you to more quickly pay off your buy let mortgages, as well as maintain the property. Try us here at KIS Commercial Finance for the best buy to let mortgage rates in the industry, as we believe you won't find better buy to let mortgage brokers anywhere else in the UK.
Please contact us for more information about buy to let mortgages