Buy to let Mortgage UK
The amount you can borrow varies a lot from lender to lender and the only way to make sure that you're getting the greatest deal is to look around. Lenders work out the highest loan in a assortment of special ways, so if you aren't happy with the amount you're being offered just look somewhere else.
Buy to let UK
As a rule of thumb the size of the loan gets larger with the amount of your deposit. Because buy to let mortgages uk are regarded as being riskier than residential mortgages it's doubtful that you'll get away with a deposit of less than 15-20% of the entire value of the property. Lenders generally steer clear of offering 100% buy to let mortgages, though some brokers will let you to use equity from another property that you already own. If you mean to go down this road it's vital to think seriously about the financial implications of a downturn in the market.
Some lenders use the property's rental income to calculate the mortgage. If this is the case then the rent you receive must exceed your monthly interest repayments by between 130-150% (for example: to cover monthly mortgage repayments of £1000, you'll need to receive £1300-15000 in rent). Other providers base their calculations on a combination of your salary and the expected rental income.
Buy to let mortgage interest rates are usually higher than residential mortgage rates because of the associated risk. The idea behind this thinking is to safeguard against rises in the Bank of England's base interest rate and to protect both parties against the possibility of the property standing vacant for a time. Cautious investors will be happy to learn that lenders offer both fixed rate and capped repayment schemes.
At present both the Association of Residential Letting Agents and the Royal Institution of Chartered Surveyors agree that you can expect a let property to yield an annual net profit. However, they disagree on the exact percentage (somewhere between 3-7%).