Buy to let Mortgages

The following information is provided for information purposes only and is not intended as investment advice

Buying to let

The following chart shows rental income for England, Wales, Scotland and Northern Ireland over the seven year period ending March 2022.

While there are regional differences, what is clear is the upward trend of rental income over time

source ONS

The UK population is estimated to be 67.1 million (2020). It is projected to grow by 2.1 million over the next 10 years (ONS statistics)

Some of the population will choose to rent

Young people studying or starting work are likely to delay buying their first home until their thirties

So demand for let property seems likely to continue

Letting contracts are usually for a minimum 6 month period, and may well extend for several years, so the letting contracts tend to be quite long term in nature

It is estimated that there are over 2 million landlords in the UK. Some of these landlords will own several properties.

Some people will be accidental landlords having had difficulty selling their property, choosing instead to let their property out

Most landlords are attracted by the prospect of regular rental income paying the mortgage with the possibility of a capital gain on the eventual sale.

You may prefer to employ a professional letting agent to manage your property. The letting agents fees will reduce your profits. The Inland Revenue will then tax your buy to let income

As buying to let is quite a big subject, we have opened up a specialist website, click on the buy to let link below

Visit our buy to let mortgages website

Holiday Lets

Britain has many lovely holiday locations. The attraction might be some natural scenery or some historic interest or just has a nice holiday feel

Now you can buy a part of your favourite retreat and earn some money when you are not there

Mortgages are available for holiday let property. These can be based upon your income. However they can also be based upon the projected holiday let income

Holiday let income will vary with the seasons and will tend to peak during school holidays

How to buy a holiday let

You will need a sizeable deposit. At least 20% of the property value. You will get better rates with a 25% deposit

You will need to find a property and contact a holiday letting agent for that area. You will need to request an estimate of rental income over a 12 month period. The rent will vary according to the time of year. But people will take breaks out of season and you are likely to get visitors throughout the year

We recommend you employ a holiday letting agent to manage your property

We can arrange a suitable holiday let mortgage for your situation and provide full mortgage illustrations showing the costs of setting up holiday let finance and the monthly costs you will need to pay. We do not charge any Broker fees to arrange a holiday let mortgage, providing your mortgage is at least £100k