Advice on Auto-enrolment; Employee Benefits; Tax Planning; Estate Planning; Buy-to-let Mortgages, Trusts and Will writing services are not regulated by the Financial Conduct Authority
How we charge:
– For new clients, we charge an initial engagement fee of £250
– For existing clients, we charge no engagement fee, i.e. £0
– We also charge a small loan fee of £499, on application, if the value of the mortgage loan/(s) are less than or equal to £300,000. However, if we are doing more than one mortgage for a client, i.e. a Let-to-Buy scenario, and the cumulative value of the mortgages is greater than £300k, then we do not charge the small loan fee.
Before meeting with a prospective mortgage client we will qualify all mortgages over the phone.
For this small engagement fee, we can take the hasstle out of applying for a mortgage/remortgage. This includes providing you with options, advice and implementation, saving your precious time and money: so why would you go directly to your bank?!
Whether you are looking at buying-to-let, where you are borrowing to invest in a rental property, or letting-to-Buy, if you want to turn your current home into a house that generates income, the Buy-to-let mortgage market is a specialised one.
Lenders generally view buy-to-let mortgages as higher risk than residential mortgages because they know that many landlords rely on rental income to make the mortgage repayments and if the property is vacant for a period, there is no income. Because of this perceived risk, interest rates tend to be higher than residential mortgages, and the lender will usually demand a higher deposit. Stamp duty charges are also 3% higher than residential mortgages.
Typically in the current market, you will struggle to borrow more than 75% of the property value, and any lender will look for rental income that covers around 125% – 145% of the mortgage repayments.
However, despite the risks and costs associated with buying-to-let, the main benefit is for its investment potential – both capital growth on the value of the property and the income it generates in rent. The buy-to-let market that exists today has a huge part to play as first time buyers are getting older and younger people are renting.
When borrowing to invest in a rental property it is important to ensure you have a clear understanding of the process, benefits, risks and associated costs. By seeking whole of market mortgage advice, you will get access to all the non-directly brokered mortgages available across the market place, i.e. not limited to a select few lenders, so you are more likely to get a better rate. Also, taking advice from a financial adviser as opposed to a mortgage broker is advantageous because the adviser will look at the mortgage in a holistic context, so the mortgage is going to fit into your financial plan and work for you both in terms of grown and risk hedging.