Buy To Let Finance

Commercial Mortgages Broker specialise in providing Buy To Let finance solutions to our clients. We work with a significant volume of property investors and property developers and we can provide Buy To Let mortgages and funding for single units right up to large portfolios for portfolio landlords.

Our panel of Buy To Let Property Finance lenders provide quick decisions. Indicative Buy To Let finance terms will normally be provided within 24 hours. An agreement in principle can normally be expected within 48 hours, once the initial application form has been processed.

We regularly facilitate Buy To Let Finance facilities for the following types of properties:

  • Single Buy To Let Property – House
  • Single Buy To Let Property – Flat/Apartment
  • Buy To Let Finance for HMOs
  • Buy To Let Finance for Portfolio Landlords (4 or more properties)

We work closely with our funding partners to provide a prompt and efficient turnaround. We add value by pushing transactions across the line, we work closely with solicitors, valuers, lenders and other intermediaries to ensure that the transactions complete promptly.

The Buy To Let Finance Process

Initial Application

Client completes application form

Indicative Terms Issued

Lender issues terms with max LTV and LTC outlined.

Valuation Instructed

Valuation is instructed and carried out

Underwriting Completed

Lender completes full underwriting

Agreement In Principle

The lender then produces an agreement in principle

Purchase Loan

Funds Released to Secure The Property

High Quality Lenders

We work with the very best bridging lenders who provide both a prompt and professional service, but more importantly who work on an ethical basis.

Technology Enabled

Commercial Mortgages Broker use technology wherever possible to make the bridging process as quick and efficient as possible.

Experienced Team

Our team has a long track record of working with bridging finance and have a deep understanding of the sector and in many cases have board level relationships with the funding partners that we work with, meaning that we can often leverage these relationships at the right time.

Buy To Let Finance Frequently Asked Questions

  • How much can I borrow with a Buy To Let loan?
    • Buy To Let Mortgages start from around £50k upwards, the maximum loan will depend on the lender, most lenders are comfortable up to around £1m, thereafter it is recommended that you get a bespoke quotation assembled.
  • How does a Buy To Let Mortgage work?
    • A Buy To Let Mortgage is very similar to a traditional mortgage, the lender will take a first charge on the property. The difference is that they will calculate the amount of money that they will lend upon the rental income from the property.
  • What are the length of Buy To Let Mortgages?
    • Buy To Let Mortgages start from short term, 1-2 years, up to 15-20 years. It is possible to get extended terms upon request.
  • How long will it take to obtain funds for Buy To Let Mortgage?
    • Buy To Let Mortgages are generally secured within  4-6 weeks of the initial enquiry.
  • What rates can I expect to pay for my Buy To Let Mortgage?
    • Buy To Let Mortgages are priced based upon the Loan To Value (LTV) required, the higher the LTV the higher the price. It is possible to secure 85% LTV mortgages. The cheapest BTL mortgages start at around 2-3% per annum at the time of writing, plus acceptance fees, plus solicitors fees, plus valuation fees.
Development Funding

Buy To Let Mortgages Explained

Commercial Mortgages Broker Explain Development Finance Facilities in detail.

Buy To Let Finance is generally split into two different cateogries, with Bridging Finance used to acquire sites either from auction or for a quick purchase. Then many developers and investors carry out renovation and refurbishment works and then seek to refinance on to “term debt”. Term debt for Buy To Let Mortgages is generally between 2-20 years in term, although shorter and longer term options are available.

The lender will normally underwrite the property based upon the following areas:

  • Value of the property – bricks and mortar valuation, which will normally be carried out by a RICS qualified surveyor.
  • Income – the lender will normally review the income which the property either is generating or will be generating once the property has a tenant(s).

The lender will based upon their lending criteria provide indicative terms and formal terms based upon the valuation and income which is generated.

Lenders will lend up to 85% LTV for Buy To Let Finance, typically the higher LTV which the borrower wishes to borrow the more expensive the terms which are offered.

There are a number of factors which a lender will consider:

  • Ownership – Historically privately owned assets were offered the best terms, however this has now evolved and in many instances it is more advatangous to borrowers to borrow money in a Limited Company as opposed to their own names.
  • Tenancy – The type and term of tenancy agreement will determine the offer which is put forward.

The Buy To Let lender will take a “first charge” over the property site, this means that if the terms of the loan are breached that the lender will have the right to enforce their charge, meaning that they can ultimately take ownership of the property.

Why use Buy To Let Finance?

A Buy To Let loan can enable a developer or investor to increase the number of properties which they own and increase the size of their portfolio.

Buy To Let Finance rates

Buy To Let Finance rates start at around 2-3% depending on the LTV and the property.

Portfolio Finance

The Prudential Regulation Authority (PRA) introduced restrictions for landlords who own 4 or more properties, and introduced various tests which lenders have to implement against such landlords in November 2017. These now mean that so-called “Portfolio Landlords” require a full evaluation of their entire portfolio as opposed to a lender lending money against a specific asset. Commercial Mortgages Broker specialist in Portfolio Finance and provide a bespoke service working with portfolio landlords.

Buy To Let Finance Costs

Buy To Let Finance Costs will vary depending on the loan to value (LTV) that you require, typically the higher the loan amount against the gross development value the higher the cost of funding. Rates typically start at around 2-3% per annum.

Additional costs that investors and developers need to consider include:

  • Acceptance fees
  • Legal fees
  • Broker fees
  • Exit fees
  • Valuation fees
  • Legal fees

Why Use Commercial Mortgages Broker for Buy To Let Finance?

Here we will outline the key reasons for using Commercial Mortgages Broker for Buy To Let finance:
  • Fast indicative terms
  • Prompt decisions and close relationships with lenders
  • Competitive rates of finance
  • Award winning lenders on our panel
  • Highly experienced team
  • We put the right deal to the right lender the first time – we know which lender will finance which transaction

Book Your Initial Consultation With Our Team Today!

Our team will be delighted to assist with your bridging requirements, get in touch today!