Providing individual mortgage advice, tailored to you
Whether you’re considering Buy to Let as an investment possibility, already have a buy to let property or
are in the process of building a property portfolio, we can help you with the essential information, advice and strategies to make sure you secure a suitable mortgage deal. We work from a comprehensive panel which is representative of the whole of the market.
When choosing a property to let, it is wise to take advice from local letting
agents to determine what types of properties are in demand and which locations are most popular. You will need to decide whether your primary
objective is income or capital growth. In other words, are you looking to make a profit month on month or are you looking to make a profit through increased equity from the second property if it
increases in value over time? The decision may affect the type of property you purchase and where it is located.
There are 3 main differences in buy to let mortgages:
Potential - the decision as to whether or not a mortgage will be offered is usually based on the rent you will earn as well as your income. In some cases your income is not ever
Rate - buy to let mortgages have slightly higher interest rates.
Deposit - typically a minimum of 20% or 25% of the property's value is required as a deposit.
When you manage a property there are many costs involved in addition to the monthly mortgage repayments. As a guide, you should be aiming
to achieve a gross rent of about 135% of the rental property's interest only mortgage repayments in order to cover your costs should anything go wrong.
These additional costs include:
upkeep - maintenance costs for the property.
agent fees - letting agents charge around 10% of the monthly rent for finding and vetting tenants with an additional cost of around 5% if you require a full management service.
rent / service charges - applicable to leasehold properties.
& Legal Protection - to cover the cost of evicting tenants in the event of non-payment of rent.
Insurance - building insurance and contents insurance for the items provided as part of the rental agreement.
Furnishings - the purchase of any furniture. If the property is to be let furnished, make sure you are covered for this by your contents insurance.
electrical appliances - cost of maintaining appliances and ensuring they comply with any regulations such as safety tests.
periods - you may experience a gap between tenancies when you have no rental income but you'll still have monthly costs to cover.
MOST BUY TO LET MORTGAGES ARE NOT REGULATED BY THE FINANCIAL CONDUCT AUTHORITY.
Call 020 3375 1999
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Highgrove Mortgages is a trading name of Wolf Finance Ltd, an Appointed Representative of PRIMIS Mortgage
Network. PRIMIS Mortgage Network is a trading name of First Complete Ltd which is authorised and regulated by the Financial Conduct Authority. Registered Office: 7 Highgrove Close,
Chislehurst, Kent, BR7 5SA. Registered in England & Wales. Company Registration Number: 10711050.
For our mortgage advice services, we will charge a fee of between £0 - £499 depending on the mortgage
amount and work involved on your application. This fee will be made clear from the outset.
The guidance contained within this website is subject to the UK regulatory regime and is therefore
primarily targeted at consumers based in the UK.