Buy to Let Mortgage Advice in Hull

More than anything, we find ourselves coming across standard residential Buy to Let mortgages the most. This type of mortgage is more or less what it says it is. A residential Buy to Let allows you to take out a mortgage on a residential property purchase, that you have the intention of renting out as opposed to living in.

We find that most Buy to Let borrowers out there will probably take out their mortgage on an interest-only basis, as doing this will ensure that their monthly payments are lower, because they’ll only be paying the interest per month.

Generally speaking, landlords will pay the monthly amount through the rental fees they’ve collected each month. You will still need to pay off the capital in full once the term reaches its end.

A house in multiple occupancy is the name that is given to residential properties that have more than two tenants and have shared areas for the tenants to use. This is commonly seen with student housing.

Depending on the size of your HMO is, you may have the legal obligation to obtain a license from your local council. We would absolutely recommend that you speak to the local authority ahead of time so you know how it all works on the legal front.

Because HMOs are a very specialist type of Buy to Let in Hull, you’ll find that there aren’t a lot of mortgage lenders out there who will offer mortgage products on them. Fortunately for our customers, we do have some mortgage lenders on panel who are quite happy to work with HMO property investments.

HMOs often have the potential for a higher return on investment than other standard Buy to Let ventures, though it is important to remember the other costs that are involved with these types of investment, such as license fees from the local authority and the general maintenance of your property, especially if it is let out to students.

We are finding that more and more landlords are taking a look at their options for making their investment through means of a limited company SPV (Special Purpose Vehicle). This tends to be more prominent with experienced Buy to Let landlords with large property portfolios.

As a standard rule of thumb, it’s probably safe to assume that you will pay a larger interest rate when you take out a mortgage with your Ltd. Company and you will be limited in the range of lenders that you’ll be able to go to.

On the flip side to that, the costs of this can be massively outweighed by the potential savings on tax. We would definitely recommend that you have a good, serious chat with an experienced tax advisor to make sure that taking this path is right for you.

Holiday Let mortgages are a type of mortgage that is used for those who are looking to purchase a property that will have various different regular short term tenancies over it’s time.

A holiday let is another one that is classed as a specialist type of investment, so again you’ll find that there aren’t a lot of options out there for you with this. Putting a more positive spin this though, our expert mortgage advisors in Hull are incredibly knowledgeable when it comes to Holiday Let lending criteria and will be able to look at the options you could take.

Here we have had a good look at the most common Buy to Let investment situations that we have come across throughout our time as a mortgage broker in Hull.

If your situation is not mentioned above, then please feel free to contact us. Using our in-depth experience, it’s not often that we haven’t come across at least a variance of a mortgage situation before. We look forward to lending our knowledge to your mortgage process.