Buy To Let Mortgage Lenders
Buy To Let Mortgage Lenders | How They Assess Your Application
Buy to let mortgage lenders are all very distinctive and there are tremendous differences in lenders' criteria for BTL mortgage applications. Here are some of the aspects mortgage lenders consider when assessing your application for a buy to let mortgage.
Your credit history follows you everywhere and a buy to let mortgage application is no exception. Mortgage lenders will score you according to certain criteria when deciding whether you qualify for a loan. To begin with, mortgage lenders look at criteria such as your age, the time you have lived at a particular address (more than three years is good) and your employment status. Some buy to let mortgage lenders will only lend to first time landlords who are employed or can prove a certain income. Other buy to let mortgage lenders will lend to practically anyone, though at a premium.
Another factor for buy to let mortgage lenders to consider is how you have dealt with previous credit. If you have a perfect credit history, then most buy to let mortgage lenders will have deals that suit you at some of the best interest rates on the market. However, even if your credit history is less than perfect, there are still plenty of mortgage lenders to choose from.
There are several buy to let mortgage lenders who specialise in loans to people with impaired credit. That means that people who have had County Court Judgements against them because of arrears or defaults can still get B2L mortgages. There are buy to let mortgage lenders who will lend to people who have entered into individual voluntary arrangements (IVAs) provided that these have been properly managed. There are also BTL mortgage lenders who will lend to discharged bankrupts, though they usually make stipulations about how long ago the bankruptcy has been discharged.
Ability To Pay
In addition to these criteria, mortgage lenders will look at your ability to repay the buy to let mortgage. This will include a consideration of your income, either through salary slips or through self-certification. There are even lenders who will waive considerations of income if the loan to value on the mortgage is below a certain percentage. An assessment of your ability to repay will also take into account the rental income. Different mortgage lenders have different rental cover requirements. The average is around 125 per cent (that means rental income must cover 125 per cent of the interest payments on the mortgage). However, there are lenders whose rental income requirements are as high as 130 per cent or as low as 100 per cent.
Another consideration for buy to let mortgage lenders is the number of properties you already have mortgaged with the lender or lending group. There may be maximum limits of anywhere from one to 50 properties, and there are also a few B2L mortgage lenders who will lend on any number of properties as long as it fits within a particular threshold. Whatever your circumstances, there are sure to be buy to let mortgage lenders who suit you.
