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Invest in your future by investing in the growing UK property market. Xpress Mortgage Solutions can compare products from the whole of the UK Buy to Let Market and find a BTL mortgage suited to your investment needs.

Rental income
Buy to let mortgages work slightly different to residential mortgages as the lenders use rental income to calculate affordability. Lenders criteria can vary but your rental income will need to cover 100% to 125% of the monthly mortgage payments.

For example if your mortgage payments were £1000 per month and the rental cover is at 100% you would need rental income of £1000 per month, or if your rental cover is 125% you would need £1250 rent per month to cover the cost of the mortgage.

Slightly varied criteria added by some lenders is calculating rental cover required on a higher interest rate, usually the lenders variable rate, rather than the interest rate you are paying.

For example your product interest rate maybe 5% with monthly payments of £1000 but the lender will base their rental cover on a 6% interest rate which will mean your rental cover will be based on the figure of £1200

Our mortgage advisors can advise you about rental income required and find a product that covers the rental you expect to receive.

How do lenders calculate your estimated rental income?
Lenders will often use a property surveyor to give a realistic rental value for your property. There are many points they could use to calculate this figure including:
Deposit size
Buy to let mortgage lenders tend to require larger deposits than residential mortgages. The deposit size starts at 10% but for a more competitive interest rate you will be looking at around 15%+.

A larger deposit will also reduce your monthly payments, with Buy to let mortgages this allows you more flexibility with the lenders rental income calculations.

Interest only mortgages
An interest only mortgage will keep your monthly payments to a minimum and it will be more likely that the rent covers your monthly mortgage payments. With this type of repayment method the balance will not reduce during the term of the mortgage and you understand that it is your responsibility to ensure there are sufficient monies available to repay the capital at the end of the term. The total interest payable will be higher than on a repayment mortgage, this is due to no capital repayments being made and as such interest is charged on the outstanding balance throughout the mortgage term.

If you are looking to become an investor then contact an advisor today and we can discuss options available to you.

Your home may be repossessed if you do not keep up repayments on your mortgage.
Xpress Mortgage Solutions Ltd FSA no: 442108 is an appointed representative of GHL Group who are authorised and regulated by the Financial Services Authority
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