Buy to Let
Property investors purchasing residential premises to let out will usually use a buy to let mortgage. This type of mortgage differs from an individual residential mortgage, and there are many different options to consider.
If you are looking for the best buy to let mortgage company fund your portfolio investments, give Revolution Brokers a call on 0330 304 3040 or drop us an email at info@revolutionbrokers.co.uk. We will work with you to source the best possible terms for your purchase!
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 info@revolutionbrokers.co.uk - 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.
Frequently asked questions
Can I get a buy to let mortgage with a small deposit?
You can! Revolution Brokers can achieve a buy to let loan to value of 85%. However, some lenders can negotiate on this depending on your circumstances and the specific project.
The buy to let mortgage market is growing, which means that lenders are becoming more competitive and flexible. Compared to last year, buy to let mortgages increased by around 400 properties, with approximately 2,000 new mortgage products to choose from.
Your best buy to let mortgage deals at 85 LTV will depend on how much deposit you have to offer, and your experience as a landlord.
For example, some lenders can accept a 15% deposit for an 85 buy to let mortgage, whereas others will require 25% or higher.
What are the best buy to let mortgage deals at 85 LTV?
There are a very limited number of lenders offering buy to let 85 LTV mortgages, which is why it is essential to use an expert broker to ensure that your terms are the best available.
Finding a lender who will accept a lower 15% deposit is more challenging than finding a standard 75% capped LTV. Still, Revolution Brokers work with an established network of buy to let lenders who can offer flexibility when it comes to their terms.
You might find that a mainstream lender might offer a low-deposit mortgage, but charge higher interest rates. Usually, providing a higher deposit will reduce the rates payable on the mortgage.
Where can I get a buy to let mortgage for a new build?
Revolution Brokers work with many first-time investors, or developers looking to purchase a new build property who have not been able to secure appropriate lending through mainstream lenders.
With our expertise, most first-time investors borrowing at a typical LTV ratio can secure rates which are the same as those available to experienced landlords.
While you might expect to be asked for a higher deposit, or to provide more information about your personal finances, it is possible to secure a competitive buy to let mortgage whether you are buying a new-build, or investing for the first time.
What are your tips for finding the best 85 buy to let mortgages?
Our advice for comparing buy to let mortgages is:
- Keep an eye on the fees. Some lenders will offer competitive rates, but with much higher rates than you would expect to pay. Charges on buy to let mortgages do tend to be higher than for residential purchases, but these should be transparent and upfront so you know what you will pay.
- Check the early repayment fees. Some mortgage offers look attractive but carry steep early repayment penalties that can wipe out the profitability of an investment project. Exit fees during the first year can be as high as 5% with some buy to let mortgage companies.
- Use an expert broker to get the best deals. Brokers work with the whole of the sector and have access to mortgage products and deals that are not on the open market. We also negotiate on your behalf, achieving bespoke arrangements that a lender would not offer to an individual application.
