Is It Difficult To Get A Buy-To-Let Mortgage In The UK? 3 Top Tips From A Mortgage Broker!

Is It Difficult To Get A Buy-To-Let Mortgage In The UK: I recently sat down with Andrew Clothier from Regents Court Financial for an interview on my YouTube channel. Andrew is a mortgage broker who has saved me a lot of money over the years, via his extensive knowledge of the lending industry.

In the interview, Andrew reveals the exact tips and tricks every property investor needs to know when financing their investments. He also talks about recent changes to mortgage rates and updates from within the lending sector. If you are a property investor, or hope to be in the future, this is an essential interview to watch until the end. You can find the full video at the top of this page.

A lot of people that are getting started in property ask ‘is it difficult to get a buy-to-let mortgage in the UK’? The reality is, it depends on what you consider difficult! One positive is that your income doesn’t matter as much as it does for a residential mortgage. But there are a number of things you need to be aware of when applying for a buy-to-let mortgage. That is where the advice of an independent whole-of-market mortgage broker, like Andrew Clothier, can be extremely helpful! In this article, I will give you 3 tips from the interview that can help anyone applying for a buy-to-let mortgage in the UK!

1. Is It Difficult To Get A Buy-To-Let Mortgage In The UK? Stress Tests

Unlike a residential mortgage, your personal income isn’t as important to lenders. Instead, what they look at is how much the property will rent out for. This is known as a ‘stress test’. Andrew explained that currently this means an assumed interest rate of 7.1%, grossed up by 40% (and by 25% for limited companies).

If you fall short of this test, however, there are things you can do. Lenders are often willing to soften this test if you are willing to take a 5-year fix rate mortgage. Some lenders can also consider your income towards the stress test. They will look at any income above your monthly living expenses and add this to the assessed rental income, this is called “top slicing”.

2. Is It Difficult To Get A Buy-To-Let Mortgage In The UK? Second Opinions

When you are obtaining a mortgage, the lender will send someone to value the property. In some cases they may value the property, or its rental value, much lower than you think it is worth. You can appeal the valuation, but often this will not be fruitful.

If you think the valuer has really got it wrong, one option is to try another lender. However, you will need to make sure that the new lender uses a different firm of surveyors, or you risk having the same person come back to value the property. This is where having a skilled mortgage broker, who knows exactly what to ask the lender, really comes in handy!

3. Is It Difficult To Get A Buy-To-Let Mortgage In The UK? Understanding Holiday Let Mortgages

If you want to rent a property out as a holiday let or as serviced accommodation, you need a specific type of mortgage. Luckily, more and more lenders are offering this type of product. When speaking to your broker, make sure to specify if you are planning to go down this route.

It is important to note that many lenders will not assess the ‘stress test’ based on a holiday let income, but rather its income as a single let property. So make sure the numbers work as a normal buy-to-let, even if you plan to use the property as serviced accommodation!

Is It Difficult To Get A Buy-To-Let Mortgage In The UK? Not With The Right Training!

So, is it difficult to get a buy-to-let mortgage in the UK? Not really, but it helps to have the right property training! Join me at my next £1 training event!

On the course, you will learn how to:

  • Become a property investor using other people’s money so that you can get started straight away

  • Utilise the 5 different types of raised finance so that you know exactly what to offer and when

  • Find the perfect properties for the BRR strategy

  • Recycle your money so that you can ‘rinse and repeat’

  • Build a power team you can trust, so that you can save time and money

  • And much more!

Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!

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