Whether you’re becoming a first-time landlord or you’re a long-term property investor, we’re here to smooth the way to a better buy to let mortgage
Building your property portfolio is an exciting time, and we’re just the team you want by your side when it comes to those crucial decisions. Our in-house expertise makes us the ideal fit to find a buy-to-let mortgage that suits you – no out-of-the-box solutions here. Expand your horizons with Think Plutus.
What amount can I borrow?
If you’ve had a mortgage on your own home, you likely know the ins-and-outs of how the typical process goes. When it comes to buy to let properties, lenders will calculate how much you can borrow based on the rental income of the property. As well as a range of factors such as your tax rate, the types of property and your choice of mortgage overall.
How do I find the right mortgage for me?
There’s no one mortgage that’s right for everyone. We tailor all our mortgage recommendations to find a solution just for you. By finding the ideal choice, we can help you connect with a mortgage that works for you in the long-term. All we need is ask a few questions to get started.
How can you help me?
At Think Plutus, our team is equipped with years of industry expertise, allowing us to find mortgages that fit your lifestyle. For growing and maintaining your property portfolio, we’re the team you want on-side. Forget confusing jargon and complicated financial terms. We do it all in plain English, to make every part of the process easy to understand.
Ready to expand your property horizons?
Ready to leap into becoming a landlord, or want to take on your next property as quickly as possible? Sorting out your buy to let mortgage is step number one. If Think Plutus sounds like the team to give your property portfolio a boost, then contact us on 020 3026 3040, or fill out our contact form. We’ll have you on-track to owning your next property in no time.
How does buy to let work with Think Plutus?
Looking for a little insight into why we’re the best pick to expand your property portfolio? Beyond our friendly support and industry expertise, we’re more than ready to provide all the little details to get you the mortgage that’s right for you. We don’t deal in confusing finance-speak, so everything is laid out in plain English from day one.
Read on to find out more about buy to let with Think Plutus
Becoming a first-time landlord can be equally exciting and scary, especially if you’ve had only a little experience of maintaining and renting out property in the past. There are many reasons why individuals choose to become landlords, whether it’s inheriting a property, they don’t want to sell, or they are moving to a new home and would like to rent out the first. For others, going into life as a landlord is a calculated move – done right, being a landlord can be a highly profitable career, especially if you choose to continue expanding your property portfolio over time.
So, for those planning to transition into a landlord role, the first step is setting yourself up with a buy to let mortgage. Unlike traditional mortgages, these individual agreements are designed with landlords in mind. As the name suggests, a buy to let mortgage allows you to buy a property specifically to rent it out. Before you leap into the first offer you see, it’s essential to think carefully about which mortgage is right for you. If you wish to let your house to a family member you might need a regulated buy to let mortgage. If you wish to rent out a property you currently live in or you have become an accidental landlord by inheritance, then you might need a consumer buy to let mortgage. Don't worry that’s where professional services like Think Plutus come in. Our unique experience allows us to find you mortgages that work on your terms, no need for compromise or confusion.
While purchasing a property to live in can be an emotional process, it’s important to separate those feelings when it comes to your first rental property. Instead, consider the investment and potential of the property you’d like to buy – and you’re far more likely to be on to a winner. To get you started, here are some of the things you should consider before shaking hands and agreeing to a buy to let mortgage that might not quite work for you:
- Income: For the majority of buy to let mortgages, the lender will require the amount of rent you would like to charge to exceed the amount of monthly mortgage payments – typically by at least 125% at a stress rate of at least 5.5%. The actual income amount required can depend on a variety of other factors, such as the type of property and whether you’re hoping to buy personally or through a company you own.
- Goals: Are you hoping to enhance your income, grow a more significant portfolio, or a little of both? Alongside the cost of a mortgage and other landlord responsibilities, it’s important to consider tax costs for renting – especially concerning your income tax rate. Get informed beforehand, and you’ll be in a far better position to get started.
- Professional Support: Buying a property to let can be a confusing and challenging process if you decide to go it alone. But fear not – with the support of experts, like our Think Plutus team, as well as advice from an Estate Agent, you’ll be able to get everything right the first time. We cut through the confusion to give you clear answers, making the buy to let mortgage process transparent for you.
It is worth noting, for prospective landlords, that the process of renting out a property isn’t quite a simple as it once was, especially if you need a limited company buy to let mortgage or a HMO mortgage. With all kinds of new regulations and procedures in place, it pays to have all the knowledge behind you before you start. Luckily, our in-house team of experts are well-versed in all regulatory requirements – and you can take a look at all the small print in the last tab.
For professional or experienced landlords, as well as those with an existing property portfolio, you’re likely already aware that active management can make a big difference to ensuring you’re getting to most from properties you already own. Whether it’s finding the right rate, accessing equity or any other factor in boosting growth, working with the experts is the best way to maximise what you get out of being a professional landlord.
Working with an experienced broker, like Think Plutus, can allow you to get even more out of your properties than you have before. We’re well-versed on all the requirements, standards and regulations set out under the PRA (Prudential Regulation Authority), which state that mortgage lenders should act as underwriters for the portfolio of professional landlords. We offer that service and more, making us the ideal solution for advice, support and underwriting.
For experienced landlords applying for mortgages, this information may be required:
- All details of alternative or personal income sources, including tax returns and evidence of tax payment on rental properties
- A portfolio summary, including the value of the property, the rent received mortgages and addresses. Additional costs should also be included, such as ground rent, letting agency costs and insurance.
- A statement of asset/liability
- A projection of cashflow
- A complete business plan with commentary
Whether you’re acting as a limited company or working as a landlord under your name, gaining expert advice and support to ensure you’re doing it all the right way is step one. At Think Plutus, we guarantee you access to the right help and offer all the feedback needed to expand your property portfolio the right way.
The small print
If you’re already a landlord, or you’ve researched what it takes to be a landlord in the UK, then you’ve likely already come across Section 24. Since April 2017, various tax changes and regulations have been amended, which may result in landlords being pushed into high tax brackets, and even losing certain benefits they once had. It’s important to understand the regulations before becoming a landlord if it’s something you’re considering.
Some of the most significant changes that Section 24 included were:
- Landlords with furnished properties can no longer claim 10% wear and tear allowance. Instead, this amount is now based on the actual cost to the landlord as a result of wear and tear
- Mortgage interest can now only be used for tax relief at the basic income tax rate, as opposed to the highest rate of tax overall
- Stamp duty has increased for landlords and second home buyers by 3%
- The stress tests carried out by mortgage lenders on professional landlords must be based on the business plan, portfolio, cash flow and other factors. Part of the purpose of this is to ensure landlords are currently paying their owed tax correctly.
- Landlords can no longer grant new tenancies in properties that do not have an EPC of E or higher
In addition to these regulations, new Government rules are also coming into play that means buy to let investors must become fully licensed as landlords on any properties, rather than over a specific limit. While these rules may seem scary to some, so landlords that are informed, educated and prepared, it’s all just part of the process.
At Think Plutus, we’re fully up-to-date on all you need to know as a landlord. So don’t be afraid to come to us for advice, help and to tap into our knowledge when it comes to considering a buy to let mortgage.