We work with a lot of landlords to provide competitive buy-to-let mortgages. Let us help you with the financing of your investment property.
For those new at letting, it is what it says on the tin – a buy-to-let mortgage is a loan that’s specifically designed for landlords who rent out a property.
It’s similar to a residential mortgage in that you’ll need a good credit history together with a decent deposit. You cannot live in the property yourself and it must be rented to tenants.
During the Coronavirus pandemic, the government has increased the threshold at which stamp duty is paid on property sales from £125,000 to £500,000. But this increase won’t be around forever! You have until 30th June 2021 to save on the first £500,000 of your property, after which the scheme tapers back down to £125,000 by the end of September. Make sure you allow enough time to complete the purchase of your dream home and reap the benefits. Give us a call today to see how we can help you get the right deal.
Finding the right buy-to-let remortgage deal is an important part of maximising your net rental income. We can help you check which mortgage lenders are suitable for your buy-to-let portfolio, for example some will have a maximum number of properties you can include and exclude. Certain lenders may also have exclusions, for example on certain types of construction, and houses of multiple occupancy.
Citygate Mortgages can help you navigate the competitive buy-to-let mortgage market and get the deal that is right for you and your circumstances.
A fixed-rate mortgage is a home loan where your interest rate is guaranteed to stay the same for a set period of time, giving you peace of mind because you know exactly how much your payments will be every month.
In short, a tracker mortgage is a home loan where your interest rate will ‘track’ the Bank of England’s base rate, plus a set percentage. This can mean your payments will reduce as the interest rate reduces, but it can also mean they increase too.
The base rate is currently at a record low of just 0.1%, due to changes caused by the COVID19 pandemic. So, if the interest rate on a tracker mortgage was the base rate +1%, the amount of interest you would pay is 1.1%. If the base rate went up, the interest rate on your tracker mortgage would also rise.
With a discount mortgage you pay the lender’s standard variable rate, with a fixed amount discounted. For example, if your lender’s standard variable rate was 5% and you had a 1.5% discount, you’d pay 3.5%.
A repayment mortgage means as long as you meet all your payments every month, you will be repaying off part of your capital (the money you borrowed) and part of the interest rate. At the end of your mortgage term the property will be fully repaid and will be fully owned by yourselves.
Unlike a repayment mortgage, you only pay off the interest portion of your loan. This means you have to make sure that at the end of your mortgage term you have enough money saved to pay off the outstanding capital in one lump-sum in order to complete your mortgage agreement and own your home.