Today I have been speaking with a few clients who are interested in investment properties, and how they can best achieve a mortgage offer at the lowest cost. For these types of mortgage the mortgage lenders treat new purchases as a business transaction, so it is an investment or commercial type of lending. This means the process is a different process to a residential mortgage, and needs a rental income per month that you would be charging the prospective tenants. Many more criteria apply we can check case by case for you, for instance the term “consumer buy to let” applies to any property you have lived in and seek to convert into a buy to let, some lender’s do not supply these and some do.
If you are new to the market, maybe a first time buyer or first time landlord – there are some scopes to consider for you. This morning I have been looking at the Buy to Let market and have been on the phone with some 10+ mortgage lender’s so far, checking their lending criteria and limitations. Some mortgage lenders are open for business during this COVID-19 pandemic and are still offering upto 70% LTV limitations on lending, and some even reaching the more traditional 75% LTV on certain property types. It is always case dependent, so the riskier cases at the moment are the hardest to perform. Such as valuations on a HMO potential for example
Always talk the case through up-front so we can check it, for example today we found out that Paragon are offering a pre-valuation check process – where we can sense check the case for you i.e. the property type in advance. A great tool for us to use.