Buy to Let
Whether you’re an established landlord or it’s your first time, we’re here to help
Taking the hassle out of building your property portfolio
Property is a popular investment for the future and we’re used to helping our clients plan their extra retirement income or obtain capital growth through property. Whether you’re looking to purchase your first investment property or expand your portfolio, your Caenstone advisor will talk you through the options available to you.
Our step by step guide on
how it all works
Put bluntly, it depends on what you can afford.
A buy to let purchase differs from a residential purchase in that the estimated rent will be a driving factor as to how much can be borrowed as well as an applicants earnings and commitments.
That’s why we start with a review of your current finances, and we talk you through the various costs of buying a property. Before you start browsing the property pages, you need to know your budget, including how much deposit you should have available.
We will let you know what documentation is required.
A mortgage in principle is not a guarantee, but it does show that a lender is willing in principle to financially support your property purchase.
When you start viewing properties, this makes you look like a serious buyer.
Know what you’re looking for (including your must-haves, nice-to-haves, and deal-breakers).
Then you need to know where to look, including websites, estate agents, property developers, and auctions.
As soon as you’ve found your perfect place, put in an offer and wait for it to be accepted.
Contact us to let us know and we’ll start to get the wheels in motion for you.
You’ll need a solicitor to take care of the legal work involved in purchasing a property.
1) They understand the property sale and purchase process
2) They handle the various pre-purchase searches so that there are no surprises
3) They take care of the contracts
4) They will register the property in your name
Now it’s time to get back in touch with your mortgage broker lender and make a detailed mortgage application. You won’t necessarily apply to the lender you have the agreement in principle with, your adviser will assess the most suitable options available at the time of application.
As part of the application process, the mortgage lender will carry out an independent valuation and survey of the property.
The minimum requirement is a ‘basic’ or ‘mortgage’ survey which is a relatively simple price appraisal, but you have the option to go for a more detailed survey that examines the building’s structure and flags up any possible long-term issues.
The bank’s surveyor will appraise the property value and also the expected rental amount that could be achieved in the current market.
Following the lender’s credit check, an examination of your financial details, and valuation of the property – and assuming everything is okay in that it falls within their lending terms and conditions – they will offer you a mortgage.
Exchanging contracts usually takes place 7-28 days before the date of completion (when the property becomes yours!) and involves the lawyers on both sides confirming that both seller and buyer are ready to proceed (for you as a buyer, that usually means the mortgage offer has been issued, having a signed contract, transferred deposit funds and a buildings insurance policy is in place.
Once contracts have exchanged and completion has taken place, you’ll be given the keys and you can secure a tenant to move in.
Helping to find you the best
We deal with hundreds of lenders offering the best mortgages on the market
Commonly asked questions
Different lenders have varying criteria as to which properties are defined as ‘new build’. A common definition is a property that has been built, converted or refurbished within the last two years; often including properties that have not been occupied since being built.
It can often be more restrictive to secure a mortgage on a new build property. However, most lenders are prepared to lend at a higher loan to value rate (LTV) on a new build house than on a new build flat.
A regulated BTL mortgage is used when the property is to be rented to an immediate family member.
The majority of lenders will refuse a mortgage on a property to be rented to a family member because of the risks involved should it come to repossession. There are lenders willing to offer a regulated mortgage for this type of arrangement.
There is no blanket maximum age for applying for a mortgage – most lenders have their own age limits.
Usually, the maximum age at the end of the mortgage term is 75 or your intended retirement age, whichever is sooner. It’s not impossible to get a loan that goes beyond this age limit, but most options require you to provide proof that you can repay the mortgage when it extends into your retirement.
Some lenders will lend to clients up to age 80, using salaried earnings. And some will lend beyond that upon proof of a pension that can cover payments at 80+.
The complete guide to buying your first home
Buying your first home is exciting! It’s also stressful, with plenty of ‘traps’ for the unwary.
Expert advice and guidance is essential, and we lay out the whole process – step by step and jargon-free – in our complete mortgage guide for first time buyers.
First time buyer - case study
Learn how Mai’s personalised experience saved her time and money, giving her the mortgage she wanted.