Rosewood Financial Advisers
Looking to invest in your future?
Buy to let mortgages
Arranging a buy to let (BTL) mortgage is similar to any other mortgage. There is one key difference though, based on the fact you plan to rent the property out. If you want a mortgage for a property you will live in, a lender will look at many factors, including your personal income and expenditure to help decide if they are happy to make you an offer. However, with BTL the lender will also take into account how much you will be able to rent the property out for.
Purchasing your first or next investment property can be a daunting prospect. The buy-to-let market can be very complex, there are many different mortgage products to choose from. We can help navigate this for you, give you all the information to factor in and highlight all the important questions you will need to ask yourself.
At Rosewood Wealth Management, we will ensure you have a clear understanding of the process, the benefits, risks and costs involved with buy to let mortgages. We will help you find the most suitable product for your buy to let project and get you on the right track to investing in your future.
How we can help you
At Rosewood Wealth, we believe in providing all of our clients a truly individualised financial advice service. We are here to help and guide you to find the ideal mortgage for your buy to let investment
Frequently Asked Questions
What is a Buy-To-Let Mortgage?
A buy-to-let mortgage is a type of mortgage specifically designed for the purpose of renting out the property.
Why is a Buy-To-Let Mortgage different from a standard mortgage?
BLT mortgages are no different from a standard mortgage; however, the fees and interest rates tend to be higher.
The minimum deposit for a buy-to-let mortgage is usually 25% of the property’s value (although it can vary between 20-40%).
The majority of BTL mortgages tend to be interest-only. This means you don’t pay anything each month, but at the end of the mortgage term, you repay the original loan in full. BTL mortgages are also available on a repayment basis.
What should I consider when purchasing a Buy-To-Let property?
There is no guarantee that the value of the property will go increase and your outgoings may exceed your rental yield if the property is vacant for some time. This should be considered a medium to long term investment risk.
Some of the fees associated with property purchase include: Stamp duty, valuation, property survey, legal costs.
Income tax is payable on your rental income, minus day to day running costs.
If renting your property counts as running a business then you will need to pay Class 2 National Insurance.
It is essential to factor in the day to day running costs of a property into your calculations for rental yield.
Letting agent’s fees, mortgage interest, redecorating, landlord’s insurance and annual safety checks (on the boiler, etc.).
Hear what a few of our highly satisfied clients have to say
I’ve received an offer for a Buy To Let mortgage that not only gives me the funds to start my business but also consolidates some existing debts and puts me in a much stronger and secure financial position. But beyond that, I have found something priceless -someone who I can absolutely trust to give me sound financial advice for many years to come; I can’t recommend her highly enough – she’s worth her weight in gold!
Client In South Yorkshire
I can highly recommend Rosewood, they offer a friendly service and first class financial advice tailored to the individual.
I was to receive an inheritance and wished to invest. With a vast amount of knowledge and patience, she guided me through the whole process of investment, not once, but twice. Excellent service, far exceeded my expectations.
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Rosewood Wealth Management Ltd
Registered in England and Wales Registered Company Number : 08291755. Registered address: 388 Brimington Road, Chesterfield, Derbyshire S41 0TF. Directors: Donna Robertson & Shannan Pool-Gorman
What to do if you have a complaint: If you have a complaint or dispute with us, you are entitled to make a complaint. We have a complaints procedure that is available on request. If you wish to register a complaint, please contact us either in writing, by telephone or email. If you wish to register a complaint, please contact us: In writing: Shannan Pool-Gorman, 388 Brimington Road, Chesterfield, S41 0TF. Email: firstname.lastname@example.org, or by telephone 01246 932300. Please be assured we treat complaints seriously. For your protection, if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service (‘FOS’). Please see the following link for further details: http://financial-ombudsman.org.uk/.
A lifetime mortgage is secured against your home and is a complex product. To understand the features and risks, ask for a personalised illustration. Your home or property may be repossessed if you do not keep up the repayments on your mortgage. You may have to pay an early repayment charge to your existing lender if you remortgage. The value of your investment can go down as well as up and you may not get back the full amount invested. Accessing pension benefits early may impact on levels of retirement income and your entitlement to certain means-tested benefits. Accessing pension benefits is not suitable for everyone. You should seek advice to understand your options at retirement.
© 2019 Rosewood Wealth Management | Rosewood Wealth Management is a trading style of Rosewood Wealth Management Ltd which is Authorised and Regulated by the Financial Conduct Authority – number: 841587. You can check this on the Financial Services Register by visiting the FCA’s website – or by contacting the FCA on 0800 111 6768. The Financial Conduct Authority does not regulate taxation advice, university/school fees planning some aspects of buy to let mortgages. The guidance and/or advice contained within the website is subject to the UK regulatory regime and is therefore primarily targeted at customers in the UK. The FCA’s consumer website address can be found here.