Buy to let mortgages are a very major part of our business these days as the number of people wanting to buy properties for this purpose has increased enormously.

 However, at the time of writing (end 2009) we are going through pretty turbulent times generally, and buy to let mortgages have been particularly badly affected.

 Don't misunderstand us - the buy to let market is very active indeed and many existing or would be landlords are taking advantage of the buyer's market whch exists at the moment and snapping up properties suitable for investment  purposes at bargain prices.

 If you have cash or can raise funds by using equity in other properties that is great, but if you are looking for a mortgage to either buy or remortgage an investment property, please note:

The maximum mortgage in any situation is now 75% of the lower of purchase price or valuation.

Mortgages for properies requiring an HMO licence(student type properties) are particularly difficult at the moment. 

The amount you can borrow is limited by the 75% rule (above) plus the mortgage outgoing calculated on an interest only basis must be covered by the rental received to a mnimum of 125% in most cases.

                                      e.g rent received £500 a month

                                     maximum mortgage £400 a month (interest only)

You will find that most buy to let lenders are taking advantage of the fact that landlord's options are limited at the moment, and in many cases are charging fees which, frankly, are extortionate in our opinion.

For the time being, if you are contemplating any matter to do with buy to let investment, we suggest you  give us a call outlining what you wish to do and we can tell you immediately whether your plans are feasible.