Buy To Let Mortgage Lender
Buy To Let Mortgage Lender | How to Select the Best One For You!
No buy to let mortgage lender is quite like another and that's why landlords need to look at all the lenders before making a decision about which lender best suits their needs. With dozens of providers and deals, deciding on the best lender can be tricky. Here are some aspects to consider before choosing your BTL mortgage lender.
First of all, you cannot say that a particular buy to let mortgage lender is better than another. That's like saying a particular pair of jeans is better than another. But no matter how good it looks, if the pair of jeans isn't right then it is not the right pair for you and the same is true of a buy to let mortgage lender.
When choosing a buy to let mortgage lender the first consideration is your individual circumstances to see which lenders' profile you fit. One question to consider is your age - one mortgage lender will lend to people over 21, while another might only issue BTL mortgages to those over 25. Since there's nothing you can do about your age, it's worth finding out about minimum age requirements before making an application.
Another question to consider before approaching a lender is whether your employment status matters. While a particular buy to let mortgage lender may lend to people with an adverse credit history, another BTL mortgage lender might prefer to lend to someone with a spotless record. And while one lender might lend to self-employed people who self certify, another might prefer proof of income.
This last is particularly important if you are a first time landlord, as a buy to let mortgage lender will want to be sure that you can repay the mortgage. You might have to have a job or show that your income is at a particular threshold. These criteria might not be as stringent for more experienced landlords. It is also important to review the minimum income requirements posted by a mortgage lender. This can range from around £15,000 to about £25,000.
BTL Mortgage Portfolio
When selecting a mortgage lender, it is also important to consider the number of properties the lender will issue a mortgage on and the maximum loan amount for each property. There is quite a variety in this area, with some BTL mortgage lenders offering mortgages for just three properties, while others lend on portfolios of 15 or more. Maximum loan amounts per property vary considerably too, from several hundred thousand to £1 million or more.
Finally, the choice of the right lender will depend on the features of individual products, including the interest rate. Landlords should look at the true cost of at buy to let mortgage over the period that they intend to keep the mortgage, rather than being swayed by a low initial rate. They can also choose among different types of interest rates (fixed, discounted and tracker) and repayment methods. They may even be able to get a flexible mortgage from their buy to let mortgage lender.
