Financing buy to let investments
One popular investment route is to purchase residential, commercial or semi-commercial properties. Once refurbished and modernised, the value of an investment can increase significantly.
Long-term financing options are available through buy to let mortgages, and rely on several criteria such as:
- Your business plan
- The cost of the investment
- What sort of property you wish to buy
- How experienced an investor you are
- The cost of the refurbishment
- Anticipated revenue rental streams
- The LTV you want to borrow at
Best buy to let mortgage deals at 85 LTV
Loan to value, or LTV, is the ratio of the amount you wish to borrow compared to the value of the property. Most buy to let loan to values are capped at 75% or 85%, and therefore most investors will need to have a minimum 15% deposit available and more often at least 25%.
There are funding options to help with the deposit requirements should you not have a deposit to hand, but have found the ideal investment project.
Bridging loans are a short-term cash flow solution and can lend against most types of project, including commercial property investments, land development projects, and refurbishments to resell.
For the best 85 buy to let mortgages give Revolution Brokers a call. Our team of expert consultants specialise in the buy to let mortgage sector and can identify exclusive deals and negotiated terms, tailored to your borrowing requirements.
Securing a buy to let mortgage for a new build
Some landlords or property developers may consider investing in new-build properties. These can be an excellent choice of investment and a cost-effective buy to let property with minimal maintenance required.
Mortgage lenders work by assessing each application individually, so it is essential to discuss your projects with a specialist broker or lender to ensure that you are applying to the right buy to let mortgage company.
Different lenders have different criteria and types of property they will lend against, so using a professional broker will save time and ensure that you get the best deals on the market.
There are lots of finance options available, such as specific buy to let mortgages for new builds and refurbishment mortgages that can be adjusted to fit your project.
Achieving a buy to let loan to value 85
While the standard LTV ratio is 75%, there is a specialist buy to let lenders who will consider different types of application and loan as much as 85%. You may be looking to expand an existing property portfolio, invest in an auction property, or be embarking on an extensive refurbishment project.
Many property developers will not have the deposit to hand for the most competitive 85 buys to let mortgage structure, and so need a tailored solution to move forward with their investment plans.
Specialist lenders can negotiate and be flexible on the buy to let 85 LTV, and so if you need a bespoke financing solution, give Revolution Brokers a call. We will help to structure your lending around your needs.
Buy to let mortgages UK at 85 LTV
Mainstream lenders are usually most able to lend to experienced investors, with a track record of trading and credit history.
If you are a new property developer or starting a new buy to let business, you may find that high-street lenders are unable to extend credit without having a minimum period of experience.
Should this apply to you, give us a call or drop us an email at firstname.lastname@example.org - we work with developers and landlords large and small, experienced and new, so can help in any scenario.
Some lenders will require a larger deposit of at least 25%, and charge higher rates of interest than you would pay on a typical residential mortgage. There are other affordability criteria to meet, such as demonstrating that rental income will be at least 145% of the annual mortgage repayments.
Revolution Brokers work with a network of reputable lenders who understand the buy to let property sector and can offer competitive buy to let loan to values of 85%. Specialist mortgage providers can also adjust their requirements for rental revenue to 125% of the mortgage costs.
One of the benefits of 85 LTV buy to let mortgages is that they are usually faster to apply for since the lenders have the security of assessing the local rental market. This provides a stable basis to lend against and means that your personal income is not the only criteria.
Best buy to let mortgages for portfolio landlords
Landlords with four or more investment properties have other options available, such as portfolio mortgages.
While many mainstream lenders may cap the number of properties against which they can lend, specialist mortgage providers can fund multiple investment properties.
The benefit of a commercial buy to let mortgage company is that they tailor mortgage offers to your projects. This means that investors can secure finance for a broader range of properties, including those that high street lenders will often not finance, such as flats in apartment blocks, or units above retail premises.
It is worth noting that commercial 85 buy to let mortgages tend to have more rigorous lending criteria and so you will need to provide business plans and documentation about your investment before you can secure lending.
However, the investment is usually chain-free, which means you can move quickly and therefore negotiate on the purchase value.