What is a buy-to-let mortgage?

A buy-to-let mortgage is a loan you can take out to buy a property that you intend to rent out to tenants.

The mortgage secured on investment residential property, which can only be rented out, can not be used as accommodation for a borrower or any close family members.

How much could I borrow?

The most you could borrow is linked to your specific circumstances, such as your identity, your owned real estate situation, your pretax income and the amount of rental income you could earn.

For people with British citizenship or permanent resident in the UK, a minimum deposit of 25% of the purchase price will be required and most lenders will require a minimum income of £ 25,000 per annum. The maximum age of the policyholder at the end of the term is 70 usually. In terms of rental income, it is very important that lenders will consider it as well. Mortgage providers will expect rental income to exceed mortgage payments by at least 15-20%. The mortgage can be taken on an interest-only basis, repayment or a mixture of both.

Some lenders will require the applicant to be a current homeowner but there are some who will consider first-time buyers and first-time landlords.

For the clients, the loan amount is mainly based on the applicant’s annual income and it will deduct the applicant’s bank debt balance.

What can Oceantide do for you?

–Fully understand your situation and needs;

–According to your situation and the request to provide you with advice and a plan ;

–According to your opinion making modifications and adjustments;

–Submit application and supporting documents to the lender;

–Liaise with the lender, the estate agent and solicitors to make sure the application was processed

–smoothly until the mortgage offer is issued.

With a strong rental market in London, property investment is often an attractive proposition. Our mortgage adviser Mr Dong tells us more about buy-to-let mortgages.

The buy-to-let market is buoyant in London and the surrounding areas, with rental incomes having doubled in the last decade and the average rental income now in excess of £1400 per month in the city.  It can therefore prove an attractive investment proposition over the longer term, both in terms of income provision and capital appreciation.

Purchasing a buy-to-let property is primarily an investment and lenders assess such applications quite differently from residential mortgages. There is a wide choice of lenders available but it is important to select the lender and mortgage deal that best suits your individual circumstances.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority does not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies. Not all services we offer are regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage. 

What exactly does the mortgage process involve?

1. Consulting Stage

The objective of this stage is to discover what you want to achieve and what is important to you. We discuss your mortgage requirements, covering areas such as affordability now and in the future. We will also discuss how you can protect your home and lifestyle for the future.

2. Application Preparation Stage – 1-1.5weeks

The second stage is all about making recommendations that match your requirement. Help you get the AIP. We will choose the most suitable scheme from all available products in the representative of the whole market. We will explain the reasons for the mortgage recommendation and details of your mortgage application

3. Looking for property and doing negotiation

4. Application submission — 6-12weeks

In the fourth stage, When you find the property, we will help you to formally submit an application to the bank or lender. Liaise with the lender, the estate agent and to make sure the application was processed smoothly until the mortgage offer is issued.

5. After mortgage offer issued — 3-4 weeks.

To complete the legal process of purchasing a property and related procedures of insurance. We will provide you with free insurance advice, and assist to apply for the insurance.

After the successful completion of the services, we will continue to provide tracking services. Before your mortgage expires, we will contact you about your remortgage application in the future.

What kind of materials do you need to prepare?

For Employee: a) Passports; b) Copy of utility bills for proof of main residence; c) Latest 6 months personal bank statement showing monthly salary; d) Proof of deposit (including stamp duty and arrangement fees etc.); e)Latest 6-month pay slips f) Latest income tax proof; g)Property title deed and latest statement of the existing loan; h) Credit reference

For Employer, If your income mainly comes from your own company then you need to provide the additional documents as follows: a)Company certificate, memorandum and articles;  b) Company’s latest three years’ financial accounts; c) Company’s latest 6 months bank; d) Company’s latest tax proof.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority does not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies. Not all services we offer are regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage. 

Feature of our services

If you are an international student, can you apply for a mortgage in the UK?

Yes, you can. You can combine with your family.

If you have a Tier 1, or Tier 2 visa, can you apply for a mortgage in the UK?

Yes, you can. Sometimes for this kind of customer, the loan interest rates are as good as the local people.

If you purchase a contract of sale, can you apply for a mortgage in the UK?

Yes, you can. We have to contact the bank. And the property must be within 4 areas in London. Some lenders can even use the price of the contract as the value of the property to apply for a loan.

If you purchase property under construction, can you apply for a mortgage in the UK?

Yes, you can. You can apply for mortgage six months before the property completion. Some banks or lenders can begin in the earlier stage.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The Financial Conduct Authority does not regulate some forms of Business Buy to Let Mortgages and Commercial Mortgages to Limited Companies. Not all services we offer are regulated by the Financial Conduct Authority. Your home may be repossessed if you do not keep up repayments on your mortgage.