Buy-to-Let Mortgages
Supporting you every step of the way.
Buy-to-Let Mortgages
A buy-to-let or buy-to-rent mortgage is tailored for properties acquired or owned with the intention of renting them out. Usually set up on an interest-only basis, with this mortgage type, you’ll make monthly payments covering only the interest, while the principal loan amount remains unchanged. Repayment of the borrowed sum is typically due at the end of the mortgage term, often facilitated through the sale of the property.
Renting out a property under a residential mortgage violates the mortgage agreement, potentially leading to repossession. To comply, one must seek consent from the lender or switch to a buy-to-let product.
Buy-to-let options cater to both private landlords and limited companies. While serving the same purpose, the latter, held in the name of a company rather than an individual, may offer tax advantages.
Our expert team of mortgage advisors can guide you through buy-to-let mortgages. With access to diverse lenders, we’ll find the best deal for your needs.
Buy-to-Let Remortgage
Remortgaging a buy-to-let property involves switching to a new mortgage for a property you already own, like getting a new mortgage but without purchasing a new property.
Reasons for remortgaging vary. Typically done when your current deal ends to secure a better rate and avoid a higher SVR, or due to changing needs, equity release, better market deals, or new intentions for the property (e.g., turning a second home into a rental).
Benefits include obtaining a cheaper rate, releasing equity for funds. The new mortgage covers the previous outstanding amount and any released equity, usable for property improvements, debt repayment, or as a deposit for expanding your portfolio.
Top buy-to-let remortgage deals are often sourced through intermediaries and independent brokers like Keith Robinson. Our expert advisers manage everything from research to application, ensuring you receive a tailored product that meets your needs.
Portfolio review
Welcome to our Portfolio Review Service at Keith Robinson, tailored specifically for landlords overseeing four or more properties. As seasoned experts in buy-to-let, we offer personalised advice for portfolio landlords, whether properties are owned individually or within special purpose vehicles (SPVs) and trading companies.
Our service entails a thorough review aimed at uncovering opportunities to lower mortgage costs or secure additional finance. While we navigate through mortgage intricacies, we understand the importance of seeking specialised tax advice for any restructuring needs.
At Keith Robinson, we are passionate about providing tailored guidance for effective portfolio growth and maximising returns. Take advantage of our transparent fee structure, where charges are tailored to your unique situation and typically settled upon successful completion. Let us be your trusted partner, empowering your decisions and enhancing your property investments.
Limited Company Buy-to-Let mortgage
A limited company buy-to-let mortgage allows you to secure a mortgage through a company with limited liability to buy a rental property, rather than in your personal name. This arrangement ensures the company is listed as the property owner, helping to maintain a clear separation between your personal and business portfolios. Depending on your circumstances, such mortgages may offer specific advantages.
Benefits
Opting for a limited company or Special Purpose Vehicle (SPV) to acquire buy-to-let properties can yield greater tax efficiency compared to personal ownership as a private landlord. Here’s why:
Income Tax on Rental Income:
- When privately owned, rental income is added to your overall personal income, potentially pushing you into a higher tax bracket.
Corporation Tax on Rental Profits:
- Profits from properties held within a limited company are subject to Corporation Tax.
- Unlike Income Tax, there are no progressive tiers for Corporation Tax, providing more stability in tax liabilities.
- Additionally, various expenses can be offset against company income that are not applicable to privately-owned rental properties.
Speak to one of our mortgage advisors from Keith Robinson for bespoke advice tailored to your situation and needs.
HMO Landlords
An HMO mortgage, also known as a specialist buy-to-let mortgage, is typically arranged through specialised brokers rather than directly offered to landlords. The application process for an HMO mortgage tends to be more thorough compared to a standard buy-to-let mortgage.
Arranging HMO mortgages can sometimes be more restrictive or costly than standard buy-to-let mortgages. This is mainly due to the limited market of lenders offering this type of mortgage and the higher interest rates associated with HMO mortgages, which result from reduced competition in the HMO market.
While obtaining an HMO mortgage may pose challenges, it’s not impossible. At Keith Robinson, our team of specialised brokers is dedicated to guiding you through the process.
An HMO mortgage functions similarly to a traditional buy-to-let mortgage, but not all lenders are willing to provide buy-to-let mortgages for HMO properties. There are key distinctions:
- Large HMO properties and certain standard HMO properties must acquire a licence before HMO mortgage lenders will approve the mortgage.
- The criteria for HMO lending are more extensive compared to standard buy-to-let mortgage criteria, and they vary widely among lenders. Some lenders may prefer specific property types or tenants over others.
Get in touch with our experienced HMO Mortgage Brokers to discuss your HMO mortgage lending requirements. We have expertise in all forms of HMO finance, whether for large or small properties, under personal names or via a Limited Company, or even within a Trust.
Holiday Let
A holiday let differs from a holiday home mortgage, which is a second home exclusively for your personal use. A holiday let mortgage is a specialized type of buy-to-let mortgage designed for purchasing a property to be rented out only during certain periods of the year, rather than continuously.
If you intend to purchase a holiday home for yourself but also want to rent it out when you’re not using it, then this type of mortgage is what you’ll require.
The primary distinction arises from the seasonal nature of a holiday let business, unlike a standard rental property. This makes such properties riskier for mortgage lenders, leading to stricter criteria.
A holiday let mortgage permits the property to be used by holidaymakers with some allowance for private use. If you later decide to either reside in the property or switch to a standard buy-to-let arrangement, you’ll need the lender’s approval. We recommend consulting with us for guidance if needed.