Buy-to-let mortgages

Financing for Residential property investment

We are able to provide a range of services designed to meet the needs of those who invest in residential property. We offer tailored solutions, including :

  • Interest only or capital repayment
  • Lending to individuals, limited companies and partnerships
  • Fixed-rate or variable-rate lending
  • A range of terms are available

For professional landlords we offer multi-property mortgages and other secured lending solutions details of which are below.

All borrowing is subject to status and is available to persons of 18 or over. Security might be required for borrowing in the form of a charge or standard security over land, or other forms of security over your investments or other assets. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

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Multi-property mortgages

To simplify investing in property - for both individuals and businesses - we offer multi-property mortgages where one loan covers some or all of your portfolio. The main benefits of this service are:

  • Ease of administration: Re-financing is not always a massive pleasure, so rather than having to re-arrange every mortgage individually, a multi-property mortgage allows clients to agree one facility for several properties at once. This also means that there is one monthly mortgage payment, simplifying financial forecasting
  • Balancing of LTVs: Property portfolios typically have mortgages at a range of Loan-to-Values (LTVs), with those that are at a higher level typically being more onerous to re-mortgage, particularly through the stress-testing that regulations require. A multi-property mortgage enables clients to spread the lending they require across their portfolio
  • Simplifying portfolio growth: For clients who may want to invest in refurbishing one or more of their properties, or even add to their portfolio, a multi-property mortgage can be arranged with a facility agreed in advance, so that funds can then be drawn down when required
  • Payment flexibility: Where funds are borrowed on a variable rate, overpayments can be made at any stage with no penalty. For funds borrowed on a fixed rate, overpayments of 10% per year can be made without any penalty
  • Inclusive affordability evaluation: In order to determine affordability, we are happy to consider non-property income in addition to the revenue from the properties

We also seek to work with clients' other professional advisers to ensure that they have the appropriate tax advice for their property investments.

Buy-to-let Mortgage FAQs

"How does a buy-to-let mortgage work?"

In addition to considering how much you are looking to borrow in comparison to the value of a property, residential mortgages typically consider how affordable mortgage repayments are from your salary. Buy-to-let mortgages however look at the income you are likely to receive in rent, normally based on the rental history of the property or local market rates if that is not available, and will consider the fact that property may not be rented out all the time.

"Do you have a buy-to-let mortgage calculator?"

Every buy-to-let circumstance is unique, as there are numerous factors that influence a buy-to-let mortgage, such as the number of rental properties owned, the amount borrowed compared to the value of the property and the income of the borrower. Given these different options, we would always recommend that people seeking a buy-to-let mortgage talk to a professional mortgage lender, such as one of our bankers, who can help them achieve the best solution for their individual circumstances.

"What are normal criteria for a buy-to-let mortgage?"

What all lenders, including Hampden & Co, will want to ensure is that the income you are expecting to receive from the property you are mortgaging is more than enough to cover the cost of the mortgage, so that the property does not become a financial burden to you. The way that most lenders will do this is to look at the projected income and compare this to the cost of the interest repayments on the mortgage, and would expect this income to cover the costs with some headroom to spare, to allow for some periods when the property is not let out and/or to allow for increases to interest rates if a variable interest rate applies for all or part of the mortgage term

"Can I get a buy-to-let mortgage as a first-time buyer?"

Yes. As long as the circumstances of the amount borrowed compared to the value of the property, your income, and the projected rental income of the property are acceptable, then you can be considered for a buy-to-let mortgage regardless of your home ownership status.

"Is a buy-to-let mortgage more expensive?"

Not necessarily. All lenders consider the risks inherent in different kinds of mortgages when considering their pricing. Where a buy to let mortgage is considered low risk, for example where the amount borrowed is small compared to the property value, and there is a good history of rental income, then pricing can be as competitive as a residential mortgage.

"Can I get a buy-to-let mortgage without being a homeowner?"

Yes, you do not need to own your own home in order to invest in property. What lenders primarily seek to understand is that the rental income will comfortably cover the mortgage costs.

"Can I get a buy-to-let mortgage for my parents?"

Yes. Most lenders would want to see either proof that your parents have been paying rent on the property being mortgaged, or that there is documentation in place to show that they will be.

"Can I get a buy-to-let mortgage for my children?"

Yes. Most lenders would want to see either proof that your children have been paying rent on the property being mortgaged, or that there is documentation in place to show that they will be.

"Can I get a buy-to-let mortgage if I am self-employed?"

Yes, while most lenders will expect to see a base level of personal income, what lenders primarily seek to understand is that the rental income will comfortably cover the mortgage costs.

"Can I get a get a buy-to-let mortgage with no exit fees?"

Yes. While exit fees frequently apply to mortgages that lenders offer at either a discount, or for a fixed period, mortgages with no exit fees are available. If you are interested in a mortgage with no exit fees, then please do let one of our bankers know that this is a requirement.

"Can I get a get a buy-to-let mortgage for Holiday lets?"

Yes. Lenders will seek to understand how much income you are anticipating receiving from the property, and if it does not have any history of being a holiday let, then the lenders will seek an understanding of the local market, including both price and typical levels of occupation – what proportion of time is the property likely to be rented out?

"Can I get a buy-to-let mortgage through a limited company?"

Yes, whether you are seeking to take out a mortgage as a private individual or through a limited company, what lenders primarily seek to understand is that the rental income will comfortably cover the mortgage costs.

"Can I get a buy-to-let mortgage for multiple properties?"

Yes, and many experienced landlords seek to have one mortgage to cover multiple properties as this can provide a range of benefits. In the first instance it makes the required reporting for professional landlords easier to manage, but beyond this many clients use these to act as lines of credit so that they can have funds available to purchase new properties quickly. More details of the benefits of this type of mortgage are available higher up this page.

"Can I get a buy-to-let mortgage on a UK property if I live overseas?"

This will vary from lender to lender depending on the permissions that they have. At Hampden & Co we can provide buy-to-let mortgages on UK properties for those who live overseas, but only for certain countries, so please do get in touch and we would be delighted to help if we can.

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