Our adviser has over 15 year's mortgage experience, including extensive dealings with landlords whose portfolios range from one property to fifty properties.
When it comes to assessing how much you can borrow, the key factor is normally not how much you earn, but the likely rental income you will achieve. Lenders typically use a notional interest rate of between 5 - 6 % and rental income must cover 125% of the notional monthly payment on an Interest Only basis. Generally lenders will not let you borrow more than 75% of the property value and often only accept applicants who already own their own home (with a mortgage is acceptable). The criteria on acceptable property types, is generally tighter and the interest rates higher than on standard residential mortgages.
We offer our clients advice not only in relation to the mortgage(s), but also in how best to protect the assets in the event of illness or death. We find many clients who have Life Assurance Policies in place, but they are not set up in a Trust. We provide this as a free service, as part of arranging or re-arranging any cover. If Life Assurance is not set up in a Trust you may be adding to your Inheritance Tax liability or your money may not go where you intend, so if you have any concerns about this, we are happy to discuss your circumstances with you and ensure your policies are set up in the correct way.